When estimating the costs of a cost object, direct costs are allocated and indirect costs are traced to the object.

Name: When estimating the costs of a cost object, direct costs are allocated and indirect costs are traced to the object.
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Direct costs are traced to the cost object because they can be directly linked to it, while indirect costs are allocated because they cannot be directly linked to a specific cost object.

When Estimating the Costs of a Cost Object, Direct Costs