Question

A cost that is easily traceable to a cost object is known as ______.

विकल्प

• Direct cost

• Indirect cost

• Variable cost

• Fixed cost

Answer 1

A cost that is easily traceable to a cost object is known as direct cost.

Explanation:

Direct costs have a clear cause-and-effect relationship with a single cost object, so accountants can track them without employing split ratios. Raw materials or dedicated worker salary, for example, are direct expenses because their exact consumption can be measured directly on the final product.