A manufacturing plant produces two product lines: football equipment and hockey equipment.Direct costs for the football equipment line are the

Question

Quizplus · Accepted Answer

Direct costs are costs that can be traced directly to a specific product or service. The monthly lease payments for the specialized piece of equipment needed to manufacture the football helmet are directly related to the production of the football equipment line. The other options are indirect costs that cannot be directly attributed to a specific product line.

A Manufacturing Plant Produces Two Product Lines: Football Equipment and Hockey