For a given job the direct costs associated with the job are ________.
A) actual overhead that has been applied to the job
B) raw materials that can be traced to the job in an economically feasible way
C) All sunk costs that can be traced to the job in an economically feasible way
D) all fixed costs

Question

Quizplus · Accepted Answer

Direct costs are costs that can be easily traced directly to a product or service, in an economically feasible way. Raw materials are a common example of direct costs because they can be easily traced to a specific job or product. Actual overhead, sunk costs, and fixed costs are not necessarily considered direct costs.

For a Given Job the Direct Costs Associated with the Job