The accuracy of costing a cost object is increased when more costs can be identified as direct costs.

Name: The accuracy of costing a cost object is increased when more costs can be identified as direct costs.
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Question

Quizplus · Accepted Answer

Direct costs can be traced specifically and accurately to a cost object, such as a product or service, which increases the precision of the costing process by reducing the need to allocate indirect costs that can be less precise.

The Accuracy of Costing a Cost Object Is Increased When