Asked by chisom chikezie on May 30, 2024
Verified
A direct cost is a cost that can be easily traced to the particular cost object under consideration.
Direct Cost
Expenses that can be directly traced to a product, service, or department, such as raw materials or labor.
Cost Object
Any item for which cost is measured and assigned, including products, services, projects, departments, or activities.
- Comprehend the categorization of costs into direct or indirect types and the ways in which this classification may vary depending on the cost object.
Verified Answer
KM
Kristian MaustJun 02, 2024
Final Answer :
True
Explanation :
Direct costs are directly related to a specific cost object or project and can be easily traced to it. Examples of direct costs include materials, labor, and equipment costs.
Learning Objectives
- Comprehend the categorization of costs into direct or indirect types and the ways in which this classification may vary depending on the cost object.