Question

A direct cost is a cost that is: multiple choice identifiable as controllable. traceable to the company as a whole. does not change with the volume of activity. traceable to a single cost object. traceable to multiple cost objects.

Answer 1

A direct cost is a cost that is: traceable to a single cost object. For example, a direct cost could be the cost of labor and materials for a specific product. This is different from indirect costs, which are not traceable to a single cost object but are necessary for maintaining operations, such as office supplies or cell phones.