We define cost tracing as:
A)the assignment of direct costs to a chosen cost object.
B)a function of cost allocation.
C)the process of tracking both direct and indirect costs associated with a cost object.
D)the process of determining the actual cost of the cost object.
E)the process of tracking only the direct and indirect costs.

Question

Quizplus · Accepted Answer

Cost tracing specifically deals with the assignment of direct costs to a cost object, whereas cost allocation deals with the assignment of indirect costs. Therefore, option A is the correct choice.

We Define Cost Tracing As