What is the definition of direct costs?
A)They are incurred for the benefit of the business as a whole.
B)They continue even if a particular product were discontinued.
C)They can be assigned to products only by a process of allocation.
D)They are those costs that can be easily and accurately traced to a cost object.

Question

Quizplus · Accepted Answer

Direct costs are those costs that can be easily and accurately traced to a cost object such as a specific product, department or project. Examples of direct costs include raw materials, direct labor expenses, and expenses related to a specific project or department.

What Is the Definition of Direct Costs