For each of the following costs, classify them as either:
-Materials not traceable to specific products
A)Direct costs
B)Indirect costs
C)Neither direct nor indirect costs

Question

Quizplus · Accepted Answer

Materials not traceable to specific products are considered indirect costs because they cannot be directly linked to the production of a specific product. Direct costs are those that can be directly attributed to the production of a specific product, such as raw materials used in the product. Indirect costs, on the other hand, are costs that are necessary for production but cannot be directly linked to a specific product, such as maintenance supplies or factory utilities.

For Each of the Following Costs, Classify Them as Either