A direct cost is a cost that is.

A. Identifiable as controllable.
B. Traceable to the company as a whole.
C. Does not change with the volume of activity.
D. Traceable to a single cost object.

The correct answer is letter "D": Traceable to a single cost object.

Explanation:

Direct Cost for finished goods is referred to the costs of the items and services directly used in production that can be allocated to a single cost object. Other costs including rent and production site insurance are indirect costs. The cost of the finished goods may be assigned to indirect costs, but they are not direct costs because they do not change with production levels.

answer; lags, push the econ below the natural level of output;

answerthe above statement is (true);