Direct costs ________.
A) are anything for which a measurement of costs is desired
B) are costs related to a particular cost object that can be traced to that cost object in an economically feasible manner
C) focus specifically on the costing needs of the CFO
D) are costs related to a particular cost object that cannot be traced to that cost object in a cost-effective manner

Question

Quizplus · Accepted Answer

Direct costs are costs that are related to a specific cost object and can be traced to that object in an economically feasible manner. This means that the cost can be specifically assigned to the cost object, such as a product or service, and is directly related to producing that object.

Direct Costs ________