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CMA Intermediate · Cost Accounting · Cost Accounting Standards (CAS 1 to CAS 24)

Under CAS 1 (Classification of Cost), a cost that can be traced to a cost object in an economically feasible manner is classified by its:

Costs that can be traced to a cost object in an economically feasible way are classified by traceability, as direct costs. Behaviour, controllability and normality are different bases of classification under CAS 1 and do not address whether a cost can be traced.

  1. ATraceability as a direct costCorrect
  2. BBehaviour as a semi-variable cost
  3. CControllability as an uncontrollable cost
  4. DNormality as an abnormal cost

Explanation

CAS 1 classifies costs on the basis of traceability into direct and indirect. A cost that can be economically traced to the cost object is a direct cost. Behaviour, controllability and normality are other, different bases of classification and do not describe traceability.

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