Answered

Direct cost tracing will accomplish which of the following?

A. Expand the number of indirect cost pools
B. Classify more costs as indirect
C. Classify as many of the costs as direct costs, as is economically feasible
D. Focus on the cause-and-effect criterion when choosing allocation bases



Answer :

GinnyAnswer

Final answer:

Direct cost tracing aims to classify costs as direct whenever possible by focusing on cost drivers and allocation bases.


Explanation:

Direct cost tracing focuses on classifying as many costs as direct costs as economically feasible. This method aims to trace costs directly to a specific cost center rather than categorize them as indirect. By utilizing cost drivers and allocation bases, organizations can allocate direct costs accurately based on factors like the number of copies made or other observable metrics.


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