The correct answer is C. Cost allocation.
Cost allocation is the process of assigning indirect costs to any specific cost object. Indirect costs are costs that cannot be easily traced to a specific cost object. They are often allocated based on some measure of activity, such as machine hours or labor hours.
Economic cost is the cost of an economic activity that is measured in terms of the resources that are used up in the activity.
Cost tracing is the process of assigning direct costs to a specific cost object. Direct costs are costs that can be easily traced to a specific cost object. They are often assigned based on the quantity of resources that are used in the activity.
Non-economic costs are costs that are not measured in terms of the resources that are used up in an activity. They are often measured in terms of the opportunity cost of the activity.