What is considered a direct cost if traditional manufacturing is used?

Question

Quizplus · Accepted Answer

Direct labour is a cost that can be directly traced to the production process, as it includes the wages and benefits of the employees directly involved in the manufacturing of the product. The other options are also manufacturing costs but are not considered direct costs. Setup costs are indirect costs because they are not tied to the production of a specific product but rather to the overall production process. Maintenance of machinery and inspection costs are considered indirect costs as well because they support the production process in general rather than the production of a specific item.

What Is Considered a Direct Cost If Traditional Manufacturing Is