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What is the amount of cost traceable to specific products?
a) $5,000
b) $10,000
c) $15,000
d) $16,000
The amount of cost traceable to specific products is the direct cost of a cost object . Here direct material + direct labor = $15000 option c .
d) $15,000 because total cost = direct material + direct labor
Agree with15,000 direct and labor costs
Option C
Direct material +direct labor =15000
Amount of cost traceable to specific product is $15000 (Direct material + Direct labor)
The answer is C.15000
Direct material +direct labor
15000, the direct materials and direct labor
A traceable cost is a cost for which there is a direct, cause-and-effect relationship with a process, product, customer, geographical area, or other cost object. If the cost object goes away, then the traceable cost associated with it should also disappear.
A business must spend money or it cannot operate. A business separates the costs it incurs into two main categories: fixed costs and variable costs. A business may then break its fixed costs down into subcategories: traceable and common fixed costs. A traceable cost is a fixed cost that has a cause-and-effect relationship with a process, a geographic area, a customer or another entity.
To keep things simple and straight forward sum of all direct costs will be traceable cost. option C $15,000 would be the right answer.
However, Overhead cost has a very complex structure to be specifically apportioned to the activity, its not easy but it is traceable.
