What is cost tracing?
A)The assignment of direct costs to the chosen cost object
B)The process of determining the actual cost of the cost object
C)The process of tracking both direct and indirect costs associated with a cost object
D)A function of cost allocation

Question

Quizplus · Accepted Answer

Cost tracing involves the assignment of direct costs to the chosen cost object. Direct costs can be clearly and easily attributed to a specific cost object, such as the cost of materials used in production or labor costs for specific employees working on a project.

What Is Cost Tracing