Costs that can be traced to a particular cost object are called:
A) direct costs.
B) indirect costs.
C) product costs.
D) manufacturing costs.

Question

Quizplus · Accepted Answer

Direct costs are costs that can be easily and accurately traced to a particular cost object, such as a product, service, or department. These costs are typically associated with the material, labor, and other resources used to produce a particular product or service and can be directly attributed to that product or service. Indirect costs, on the other hand, are costs that cannot be easily traced to a particular cost object and may include expenses such as rent, insurance, and utilities. Product costs and manufacturing costs are broader categories that may include both direct and indirect costs.

Costs That Can Be Traced to a Particular Cost Object