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The costs that are easiest to trace directly to products are a. direct materials and direct...

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.

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Answer #1

Option a : Direct material and direct labor are the costs that are easiest to trace directly to products.

Option b : Direct labor cost can be easily traced whereas the cost of overhead cannot be traced easily because it includes many continuous operating costs which is not so easy to trace.

Option c : Direct materials cost can be easily traced whereas the cost of overhead cannot be traced easily because it includes many operating costs which is not so easy to trace

Option d : All three costs are not easy to trace. So this option is also incorrect

Hence the correct answer is Option A - Direct material and Direct labour.

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