Question

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.

Answer 1

Indirect cost

Step-by-step explanation:

Indirect costs are those that are not directly attributable to a product cost. Rather they contribute to the production process that makes it possible for the company to produce products.

Examples of indirect costs are administrative costs, rent, security cost, and personnel cost.

As it does not contribute directly to product cost it is difficult to trace these costs from cost to the cost pool or from the cost pool to the cost object.

Usually indirect costs are shared among all the products manufactured.