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Homework #4Lorea PetersonPID: A99122239Chapter 123If the cost object is a manufactured product, what are the three major cost categories to accumulate?The three major categories are cost accumulation, which determines the cost of a particular object. The cost objects, which is divided into the primary costobject and secondary cost objects. The primary cost object is the cost of the promotion. The secondary cost objects are divided into three: cost of caps, cost ofadvertising, and the cost of labor. In order to determine these, we need the cost driver, which is the cause and effect with a cost object.4What is a direct cost? What criteria are used to determine whether a cost is a direct cost?Assigning costs to a department requires cost tracing and cost allocation. For direct costs, for direct costs it can easily be traced back to a cost tracing. Whetheror not a cost is easily traceble requires cost/benefit analysis.