Direct costs of a cost object are related to the particular cost object and can be traced to it in an economically feasible (cost-effective)way.

Question

Quizplus · Accepted Answer

This statement accurately describes the definition of direct costs. Direct costs can be traced to a specific cost object, such as a product or department, and are economically feasible to allocate to that specific cost object. Examples of direct costs include raw materials used in manufacturing a product or salary expenses for employees working in a particular department.

Direct Costs of a Cost Object Are Related to the Particular