Final answer:
A direct cost is correctly identified as a cost that can be easily traced to a specific cost object, such as wages for a specific product's production or the materials used in that product.
Step-by-step explanation:
True, a direct cost is indeed a cost that can be easily traced to the particular cost object under consideration. This contrasts with indirect costs, which cannot be directly linked to a specific cost object. For example, the wages of an employee who works exclusively on a particular product can be traced directly to that product, making it a direct cost. Similarly, the materials used to manufacture a specific item are direct costs of that item.
Direct costs are essential for calculating the total cost of a product, which has implications for pricing and profitability analysis.