4-8 (book/static) Question Help Distinguish between direct, indirect, and unallocated costs. O A. Managers can specifically and exclusively identify direct costs with a given cost object (that is, directly trace them) in an economically feasible way. Indirect costs cannot be so identified. However, managers can usually identify a plausible and reliable cost driver to use to allocate resource costs to cost objects that consume the resources. When direct tracing is not economically feasible and a plausible and reliable cost driver cannot be found, costs should remain unallocated O B. Direct costs include only direct-labor costs that is the wages of all labor that a company can trace specifically and exclusively to the manufactured goods in an economically feasible way. Indirect costs are costs associated with the production process that a company cannot trace to the goods or services produced in an economically feasible way, which only excludes direct labor costs. When direct tracing is not economically feasible and a plausible and reliable cost driver cannot be found, costs should remain unallocated and not expensed until an appropriate allocation method can be determined. O C. Indirect costs are costs that accountants cannot identify specifically and exclusively with a given cost object in an economically feasible way. Direct costs include only direct-labor costs that managers can specifically and exclusively identify as direct costs with a given cost object in an economically feasible way. When direct tracing is not economically feasible and a plausible and reliable cost driver cannot be found, costs should remain unallocated. O D. Managers can specifically and exclusively identify direct costs with a given cost object (that is, directly trace them) in an economically feasible way. Indirect costs are costs associated with the production process that a company cannot trace to the goods or services produced in an economically feasible way, which includes all production costs except direct labor. When direct tracing is not economically feasible and a plausible and reliable cost driver cannot be found, costs should remain unallocated and not expensed until an appropriate allocation method can be determined