Manufacturing costs that cannot be traced to specific units of product in a cost-effective manner include:
A) depreciation on production equipment.
B) direct material.
C) indirect labor.
D) Both depreciation on production equipment and indirect labor.

Question

Quizplus · Accepted Answer

Depreciation on production equipment and indirect labor are both examples of manufacturing costs that cannot be easily traced to specific units of product. Direct materials, on the other hand, can be traced to specific units as they are used in production.

Manufacturing Costs That Cannot Be Traced to Specific Units of Product