Which of the following statements is true
A)The determination of a cost object is nor relevant to the traceability of costs.
B)An indirect cost can be easily traced to an individual cost object.
C)A direct cost cannot be easily and economically traced to a cost object.
D)An indirect cost is one incurred to support a number of cost objects.

Question

Quizplus · Accepted Answer

An indirect cost is one that is incurred to support a number of cost objects, while a direct cost can be easily and economically traced to a single cost object. Option A is incorrect since the determination of a cost object is essential for the traceability of costs. Option B is incorrect since an indirect cost cannot be easily traced to an individual cost object. Option C is incorrect since a direct cost can be easily and economically traced to a cost object. Therefore, the correct answer is D.

Which of the Following Statements Is True