For a given job the direct costs associated with the job are ________.
A) actual overhead
B) raw materials
C) sunk costs
D) fixed costs

Question

Quizplus · Accepted Answer

Direct costs are costs that can be directly attributed to a particular job or product, and typically include raw materials, labor and other expenses directly related to producing the product or service. Therefore, option B is the best choice as raw materials are a direct cost associated with a job. Option A is incorrect as actual overhead is an indirect cost. Option C is incorrect as sunk costs are costs that have already been incurred and cannot be recovered. Option D is incorrect as fixed costs are costs that remain constant regardless of the level of output in the short run.

For a Given Job the Direct Costs Associated with the Job