Costs that are identified with and traced to one product or a batch of products are called
A) overhead costs.
B) indirect costs.
C) direct costs.
D) fixed costs.

Question

Quizplus · Accepted Answer

Direct costs are costs that can be easily traced to a product or service. These costs are specific to the product and are incurred during the production process. Examples of direct costs include raw materials, direct labor, and manufacturing overhead costs that are incurred for a specific product.

Costs That Are Identified with and Traced to One Product