The costs most easily traced to each product manufactured are ________.
A) direct materials and direct labor
B) direct materials and indirect materials
C) direct labor and manufacturing overhead
D) indirect materials and indirect labor

Question

Quizplus · Accepted Answer

Direct materials and direct labor are costs that can be easily traced to each product, as they are incurred specifically for the production of that product. Other costs, such as manufacturing overhead, may be indirect costs that are allocated to products based on some allocation method, making them less easily traced to individual products. Indirect materials and indirect labor are also indirect costs that may be allocated to products.

The Costs Most Easily Traced to Each Product Manufactured Are