Direct costs include
A) direct materials and direct labor.
B) direct materials and manufacturing overhead.
C) direct labor and manufacturing overhead.
D) direct materials, direct labor, and manufacturing overhead.

Question

Quizplus · Accepted Answer

Direct costs are costs that can be directly traced to a specific cost object, such as a product. Direct materials and direct labor are both directly attributable to the production of goods, making them direct costs. Manufacturing overhead, however, is an indirect cost.

Direct Costs Include