The costs that are easiest to trace directly to products are
A) direct materials and direct labor.
B) direct labor and overhead.
C) direct materials and overhead.
D) none of the above; all three costs are equally easy to trace to the product.

Question

Quizplus · Accepted Answer

Direct materials and direct labor are considered variable costs that are directly traced to the product being manufactured. Overhead, on the other hand, includes indirect costs that are not directly tied to a specific product but instead support the manufacturing process as a whole.

The Costs That Are Easiest to Trace Directly to Products