For a given job the direct costs associated with the job are:

Question

Quizplus · Accepted Answer

Direct costs are costs that are directly related to the production of a product or service. Direct material is the cost of the materials used in producing a product, while direct manufacturing labor is the cost of labor that is directly involved in the production of a product. Therefore, options B and C are correct for the given job. Option A is incorrect as actual overhead is an indirect cost associated with the job.

For a Given Job the Direct Costs Associated with the Job