Which of the Following Manufacturing Costs Is Assigned to Products

question 71

Multiple Choice

Which of the following manufacturing costs is assigned to products in a traditional environment using driver tracing?

• A)direct labor
• B)direct materials
• C)energy
• D)insurance

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.

Equipment

Includes tangible assets used in operations, such as machinery and computers, which have a useful life beyond one accounting period.

Continuous Improvement

An ongoing effort to improve products, services, or processes through incremental and breakthrough improvements.

Production Process

A sequence of operations or stages in manufacturing or the creation of goods and services, involving labor, materials, and equipment.