Question

3) Cost tracing is ________. A) the assignment of direct costs to the chosen cost object B) a function of cost allocation C) the process of tracking both direct and indirect costs associated with a cost object D) the process of determining the actual cost of the cost object

Answer 1

Answer:

The correct answer is A) the assignment of direct costs to the chosen cost object.

Explanation:

Tracking is determined under the direct, impeller, or allocation methods. In the first, it is carried out according to the classification of the cost of the product or service (direct or indirect). In the second, activities or cost resources are taken within the process; and the last one is applied when it is not possible to determine the object or it is not quantifiable.