The costs of materials that are entirely linked to the production of the final product defines
A)indirect costs.
B)direct costs.
C)specific costs.
D)designated costs.

Question

Quizplus · Accepted Answer

Direct costs are the costs that are entirely linked to the production of the final product, such as raw materials and labor costs. Indirect costs are those that cannot be directly allocated to the production of a particular product, such as overhead costs. Specific and designated costs are not commonly used accounting terms.

The Costs of Materials That Are Entirely Linked to the Production