Answer
Direct costs of an object are related to the particular cost object and can be traced to that cost object in an economically feasible (cost-effective) way. Indirect costs of a cost object are related to the particular cost object yet cannot be traced to that cost object in an economically feasible (cost-effective way. Cost assignment is a general term that encompasses the assignment of both direct costs and indirect costs to a cost object. Direct costs are traced to a cost object, in which indirect costs are allocated to a cost object.
Work Step by Step
As given above
