A cost is considered direct if it can be traced to a particular cost object in a cost effective way which means it can be
A) traced easily with the aid of technology
B) traced in a manner that is accurate
C) traced in an economically feasible way
D) possibly traced accurately with an investment in hardware and software

Question

Quizplus · Accepted Answer

A cost is considered direct if it can be traced in an economically feasible way, meaning the cost of tracing it should not exceed the benefits gained from doing so. While technology may aid in tracing the cost, accuracy and feasibility are more important factors. Option D is not the best choice as it leaves room for uncertainty and does not guarantee that the cost can be traced accurately.

A Cost Is Considered Direct If It Can Be Traced