The distinction between direct costs and indirect costs depends on their traceability to:
A) an activity
B) a manufacturing operation
C) a cost object
D) a product

Question

Quizplus · Accepted Answer

Direct costs can be directly traced to a cost object, such as a product, project, or department, whereas indirect costs cannot be directly traced to a single cost object and are often allocated based on some method of apportionment.

The Distinction Between Direct Costs and Indirect Costs Depends on Their