Please select correct answer and provide explanation why it's correct and why the other answers are wrong. Please BE SPECIFIC. Thanks

1. Which of the following is not correct when discussing traceability of costs?

Direct costs can be traced directly to a department, product, or service.

Indirect costs cannot be traced directly to a department, product, or service.

Variable costs are any costs that change from year to year.

Full costs include both direct and indirect costs.

Average costs are full costs that are divided by products or services.