The cost object is an upholstered chair made by craftsmen in a factory.An accountant can identify the amount and cost of fabric used to manufacture the chair.This is called ________ a ________ to a cost object.
A) assigning; indirect cost
B) allocating; indirect cost
C) allocating; direct cost
D) tracing; direct cost

Question

Quizplus · Accepted Answer

Tracing refers to the direct identification and assignment of a cost to a cost object. In this case, the cost accountant is directly identifying and assigning the cost of fabric used to manufacture the chair, making it a direct cost. Therefore, tracing is the appropriate term for this scenario.

The Cost Object Is an Upholstered Chair Made by Craftsmen