Costs that are specifically traceable to a unit of business are known as which of the following costs to that unit?

Question

Quizplus · Accepted Answer

Direct costs are those costs that can be directly traced to a unit of business, such as the cost of raw materials for a specific product or the wages of an employee working on a particular project. Indirect costs are not specifically traceable to a unit of business, such as rent or administrative expenses. Opportunity costs are the potential benefits foregone by choosing one option over another, and differential costs are the difference in cost between two alternatives.

Costs That Are Specifically Traceable to a Unit of Business