If a cost is incurred specifically for a segment of an organization, it is referred to as
A)a common cost.
B)a traceable cost.
C)an allocated cost.
D)an unavoidable cost.

Question

Quizplus · Accepted Answer

A cost that can be specifically traced to a particular segment or department of an organization is known as a traceable cost. Common costs are shared among multiple segments or departments, and allocated costs are apportioned based on a predetermined allocation method. Unavoidable cost is not a common accounting term.

If a Cost Is Incurred Specifically for a Segment of an Organization