Raw materials that can be traced to a cost object are an example of an indirect cost.

Name: Raw materials that can be traced to a cost object are an example of an indirect cost.
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Raw materials that can be traced to a cost object are an example of a direct cost, as they are directly involved in the production of the cost object. Indirect costs are expenses that cannot be directly traced to a specific cost object, such as rent or utilities.

Raw Materials That Can Be Traced to a Cost Object