Traceability is a function of
A) an indirect relationship to the cost object.
B) distortion.
C) a causal relationship.
D) none of these.

Question

Quizplus · Accepted Answer

Traceability refers to the ability to identify and link the costs incurred by a particular cost object to the activities that led to those costs. This requires a causal relationship between the costs and the cost object, which is the case in option C. Option A is incorrect because indirect relationships do not provide a clear link between costs and cost objects. Option B is incorrect because distortion would hinder, not enable, traceability. Option D is incorrect because traceability does require a certain relationship between costs and the cost object.

Traceability Is a Function of