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 used to assign direct materials and direct labor costs to products, regardless of the manufacturing environment. Therefore, option D (both A and B) is the correct choice. Operating supplies may also be traced in a traditional environment, but not in a JIT environment which aims to minimize inventory including operating supplies.

Which of the Following Manufacturing Costs Is Assigned to Products