The Costs Most Easily Traced to Each Product Manufactured Are

question 131

Multiple Choice

The costs most easily traced to each product manufactured are ________.

• A) direct materials and direct labor
• B) direct materials and indirect materials
• C) direct labor and manufacturing overhead
• D) indirect materials and indirect labor

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Definitions:

Units

Basic quantitative measures used in economics and commerce to count, describe, and measure the amount of a product or commodity.

Least-Cost Combination

is an economic principle that firms achieve by using the mix of inputs that minimize their costs while producing a given level of output.

MRP

Marginal Revenue Product; the additional revenue generated by employing one more unit of a resource or factor of production.

Resources

Assets, materials, and inputs needed for the production of goods and services, including natural resources, labor, and capital.