Final answer:
Traceability is the ability to assign a cost directly to a cost object in an economically feasible way by means of a causal relationship.The ability to assign a cost directly to a cost object through a causal relationship is known as traceability.
Step-by-step explanation:
The ability to assign a cost directly to a cost object in an economically feasible way by means of a causal relationship is known as traceability. Traceability allows for the identification and allocation of costs to specific cost objects based on their causal relationship. For example, if a manufacturing company wants to allocate the cost of raw materials to a specific product, traceability would enable them to track the direct relationship between the raw materials used and the product produced.The correct term for the ability to assign a cost directly to a cost object in an economically feasible way through a causal relationship is "d. traceability."Traceability in cost accounting refers to the capability to link specific costs directly to a particular cost object, such as a product, service, department, or project. This linkage is established through a clear and identifiable cause-and-effect relationship.
When costs are traceable, it means that they can be directly associated with the cost object in a way that reflects the resources consumed or incurred for that specific purpose.Traceability is crucial for accurate cost allocation and effective management decision-making. It allows businesses to understand the cost structure of their products or services, enabling better pricing strategies and profitability analysis. Moreover, it facilitates cost control efforts by identifying areas where costs are incurred, aiding management in optimizing resource utilization and improving overall efficiency.While inseparability, relatability, and measurability are important concepts in various contexts, they do not specifically capture the idea of directly assigning costs to cost objects through a causal relationship, as traceability does in the realm of cost accounting.