Which of the Following Costs Generally Can Be Traced Directly

question 139

Multiple Choice

Which of the following costs generally can be traced directly to units of product?

• A) Indirect materials
• B) Overhead costs
• C) Assembly labor
• D) Indirect materials and assembly labor

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Definitions:

Variable Expenses

Expenses that fluctuate with changes in production volume or business activity levels, including materials, labor, and utilities.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and contribute to profit.

Variable Manufacturing Costs

Charges that fluctuate based on the volume of production, like components used in product assembly and wages for workers on the production line.

Variable Selling Expenses

Selling costs that fluctuate with sales volume, such as commissions for sales staff.