A direct cost is a cost that can be easily traced to the particular cost object under consideration. True False

True

Explanation:

Given the object cost, a direct cost is any cost that can be easily identifiable to the manufacturing process of the good and it is not required to use an allocation method to determine how much of the cost activity should be assigned to the cost object.

The most common direct cost is when a cost object is a single unit produced:

direct materials and direct labors

when the cost object is the sales department, then all cost that can be linked to sales like wages, commissions, rent, and utilities are considered direct while those who arent (cafeteria cost or janitor cost) should be an indirect cost