Which of the following statements is correct?
A)A direct cost can be readily traced to a cost object while an indirect cost is traced only to manufacturing costs.
B)An indirect cost can be readily traced to a cost object while a direct cost is traced only to manufacturing costs.
C)A direct cost can be traced to a specific cost object,while an indirect cost cannot.
D)An indirect cost can be traced to a specific cost object,while a direct cost cannot.

Question

Quizplus · Accepted Answer

A direct cost can be traced to a specific cost object, such as raw materials used in producing a specific product, while an indirect cost, such as rent or utilities, cannot be directly traced to a specific cost object.

Which of the Following Statements Is Correct