Process of tracing direct costs and allocation of indirect costs is known as

The correct answer is: A. cost assignment

Cost assignment is the process of assigning costs to cost objects. Cost objects are the things that incur costs, such as products, services, or activities. Direct costs are costs that can be easily traced to a specific cost object. Indirect costs are costs that cannot be easily traced to a specific cost object.

Cost assignment is important because it allows businesses to track their costs and make informed decisions about pricing, production, and other areas.

Here is a brief explanation of each option:

• A. Cost assignment: This is the process of assigning costs to cost objects.
• B. Direct assignment: This is the process of assigning direct costs to cost objects.
• C. Indirect assignment: This is the process of assigning indirect costs to cost objects.
• D. Economic assignment: This is a term that is not used in accounting.