A direct cost is a cost that is:
A)Identifiable as controllable.
B)Traceable to the company as a whole.
C)Does not change with the volume of activity.
D)Traceable to a single cost object.
E)Traceable to multiple cost objects.

Question

Quizplus · Accepted Answer

Direct costs are traceable to a single cost object, such as a particular product or department. They can be easily and accurately allocated to specific cost objects.

A Direct Cost Is a Cost That Is