The two key pieces of information for a cost analysis is the direct material and the direct ____.
A) Labor
B) Overhead
C) Driver
D) Selling cost

Question

Quizplus · Accepted Answer

The direct labor cost is the other key piece of information needed for a cost analysis. Direct material refers to the tangible components of a product or service that can be directly traced to its production, while direct labor refers to the wages and benefits paid to workers directly involved in the production process. Overhead, selling cost, and driver are not directly related to the cost of producing a specific product or service.

The Two Key Pieces of Information for a Cost Analysis