Question

Which of the following costs incurred by a chair manufacturer would be traced to the product...

Which of the following costs incurred by a chair manufacturer would be traced to the product cost through direct tracing?

The woodworker's salary

The depreciation on factory equipment

The supervisor's salary

The insurance on the factory building

Which of the following costs incurred by a bus manufacturer would NOT be directly attributable to the finished product?

The tires for buses

The wages paid to assembly-line production workers

The windshields for buses

The depreciation on the factory building

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Answer #1

1. Option A is the answer

The woodworkers salary is the cost that can be traced back to products directly

2. Option D is the answer

Depreciation is a overhead cost which can't be traced directly

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