Indirect costs are traced to cost objects in a job order costing system.

Name: Indirect costs are traced to cost objects in a job order costing system.
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In a job order costing system, indirect costs are not traced to cost objects but are allocated based on a predetermined overhead rate. Direct costs are traced to specific jobs, while indirect costs are allocated because they cannot be directly linked to a single product or job.

Indirect Costs Are Traced to Cost Objects in a Job