Costs that can be traced to a cost object in a cost-effective way are called direct costs.

Name: Costs that can be traced to a cost object in a cost-effective way are called direct costs.
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Direct costs are costs that can be easily attributed to a specific cost object, such as a product or service. They can be traced to the cost object in a cost-effective way. Indirect costs, on the other hand, cannot be directly attributed to a specific cost object and require allocation methods.

Costs That Can Be Traced to a Cost Object in a Cost-Effective