Which of the following costs is the most likely to be traced to a customer in a service costing environment?
A) Indirect labour costs
B) Direct labour costs
C) Manufacturing overhead costs
D) Selling and administrative costs

Question

Quizplus · Accepted Answer

Direct labour costs are the costs of the employees who directly provide the service to the customer. Therefore, it is the most likely cost to be traced to a customer in a service costing environment as it is directly related to the service provided. Indirect labour costs, manufacturing overhead costs, and selling and administrative costs are not directly related to the service provided to the customer.

Which of the Following Costs Is the Most Likely to Be