Which of the following can always be physically traced to the cost object?
A) Variable costs
B) Prime costs
C) Conversion costs
D) Overhead costs

Question

Quizplus · Accepted Answer

Prime costs consist of direct materials and direct labor, both of which can always be physically traced to the cost object. Variable costs and overhead costs may contain indirect costs that cannot be directly traced to the cost object, and conversion costs include overhead costs which may not be physically traceable.

Which of the Following Can Always Be Physically Traced to the Cost