If a cost is incurred specifically for a segment of an organization,it is referred to as a
A)Common cost.
B)Traceable cost.
C)Allocated cost.
D)Unavoidable cost.

Question

Quizplus · Accepted Answer

A traceable cost is a direct cost that can be easily and accurately traced to a specific segment of an organization. It is incurred specifically for that segment and varies with the level of activity of the segment. Common costs are costs that benefit multiple segments of an organization and cannot be easily traced to one specific segment. Allocated costs are common costs that are assigned to different segments using allocation methods. Unavoidable costs are costs that cannot be eliminated even if a specific segment is discontinued.

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