The distinction between direct costs and indirect costs depends on their traceability to
A) a cost object
B) a manufacturing operation
C) an activity
D) a product

Question

Quizplus · Accepted Answer

Direct costs are traceable to a specific cost object, such as a product or service, while indirect costs are not easily traceable to a specific cost object. Therefore, the most appropriate choice is A, a cost object.

The Distinction Between Direct Costs and Indirect Costs Depends on Their