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

Question

Quizplus · Accepted Answer

Direct costs are those that can be easily and accurately traced to a cost object, such as a particular product or department. They are not incurred for the benefit of the business as a whole and would likely be discontinued along with the product they are associated with. Direct costs do not require a process of allocation to be assigned to products.

Direct Costs