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

Question

Quizplus · Accepted Answer

Cost tracing involves assigning direct costs to a specific cost object, such as a product or service. This is distinct from cost allocation, which involves assigning indirect costs to a cost object based on a predetermined method. Cost tracing allows for a more accurate determination of the actual cost of a particular product or service.

Cost Tracing Is