Which of the following manufacturing costs is assigned to products in a traditional and JIT environment using direct tracing?

Question

Quizplus · Accepted Answer

Direct tracing is a method of assigning manufacturing costs directly to products using a specific costing system. Direct materials are raw materials that are specifically identified as being used in the production of a particular product and are directly traced to that product. Indirect labor, operating supplies, and indirect materials are allocated to products using other costing methods such as overhead allocation based on predetermined rates or activity-based costing.

Which of the Following Manufacturing Costs Is Assigned to Products