Costs that can be easily traced to a speciﬁc department are called:
A)direct costs.
B)indirect costs.
C)product costs.
D)manufacturing costs.
E)processing costs.

Question

Quizplus · Accepted Answer

Direct costs can be easily traced to a specific department or product, whereas indirect costs cannot. Product costs and manufacturing costs are broader categories that can include both direct and indirect costs, and processing costs are a specific type of cost that relates to the production process. Therefore, the best choice is direct costs.

Costs That Can Be Easily Traced to a Speciﬁc Department