There is no convenient or economical way to trace a(n) _______ from the cost to the cost pool or from the cost pool to the cost object.
A)Direct cost
B)Indirect cost
C)Cost assignment
D)Cost allocation

Question

Quizplus · Accepted Answer

Indirect costs are difficult to trace directly to a specific cost object, so they are assigned or allocated to cost pools and then assigned to the cost object through a cost allocation process. Direct costs, on the other hand, can be easily traced to a specific cost object without the need for allocation or assignment. Cost assignment is the process of assigning costs to cost objects, while cost allocation specifically refers to the process of allocating indirect costs to cost objects.

There Is No Convenient or Economical Way to Trace A(n)