Misleading cost numbers are most likely the result of misallocating:
A)direct material costs
B)direct manufacturing labor costs
C)indirect costs
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Misleading cost numbers are often a result of misallocating indirect costs, such as overhead expenses. Direct material and direct manufacturing labor costs are typically easier to accurately track and allocate, but indirect costs can be more difficult to assign to specific products or processes.

Misleading Cost Numbers Are Most Likely the Result of Misallocating