1) The cost that is related to the particularly cost object and can be traced to it in an economically feasible (cost-effective) way is called:
o Indirect cost
o Cost tracing
o Direct cost
o Variable cost
The cost that is related to a specific cost object and can be directly attributed to it in a cost-effective manner is called a direct cost. To determine the answer, we need to understand the definitions of each option provided.
1) Indirect cost: This refers to a cost that cannot be directly traced to a specific cost object or cannot be easily allocated. Examples of indirect costs include rent, utilities, and administration expenses.
2) Cost tracing: This refers to the process of identifying and allocating costs to a specific cost object. Cost tracing involves directly associating costs with the cost object using appropriate cost allocation techniques.
3) Direct cost: This is the cost that can be specifically identified and allocated to a particular cost object. Direct costs can be directly traced to the cost object, such as direct materials or direct labor costs.
4) Variable cost: This refers to costs that change in proportion to the level of activity or production. Variable costs are not necessarily direct costs because they can also include indirect costs that vary with the level of activity.
Based on the given options and their definitions, the cost that is related to the particular cost object and can be traced to it in an economically feasible (cost-effective) way is called a direct cost.