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Which of the following statements is correct regarding direct and indirect costs? The distinction between a direct and indirect cost depends on the product, activity,

Which of the following statements is correct regarding direct and indirect costs?

The distinction between a direct and indirect cost depends on the product, activity, or department to which the cost pertains.
If a cost is indirect to a department within a plant, it will also be indirect for the plant as a whole.
Sunk costs are always direct, and opportunity costs are always fixed.
Direct costs are always variable and indirect costs are always fixed.

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