Pierre's Gourmet Foods produces high-quality desserts and appetizers that are distributed by upscale grocery stores. When assigning production costs to its various food products, in which category are the costs of ingredients used to make a product?

Question

Quizplus · Accepted Answer

The costs of ingredients used to make a product are direct costs because they can be directly traced to a specific product or production process.

Pierre's Gourmet Foods Produces High-Quality Desserts and Appetizers That Are