Manufacturing costs that cannot be traced to specific units of product in a cost-effective manner are:
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 considered indirect costs, as they cannot be directly traced to specific units of product in a cost-effective manner.

Manufacturing Costs That Cannot Be Traced to Specific Units of Product