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27 October, 14:38

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.

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Answers (1)
  1. 27 October, 17:10
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    (D) Traceable to a single cost object.

    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.
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Home » Business » 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.
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