Question

A direct cost is a cost that is:

(A) Identifiable as controllable.
(B) Traceable to the company as a whole.
(C) Does not change with the volume of activity.
(D) Traceable to a single cost object.
(E) Traceable to multiple cost objects.

Answer 1

(D) Traceable to a single cost object.

Step-by-step explanation:

A direct cost -

It is refers to the amount which is directly linked to the production of the specific products and services , is referred to as the direct cost .

The direct cost is variable in nature .

The direct cost can be traced to the cost object , that can be department , product or service.

Hence, from the given information of the question,

The correct option is D.