Costs Can Be Classified into Those That Are Traceable to Products

question 57

Multiple Choice

Costs can be classified into those that are traceable to products and those that are non- traceable. The costs of raw materials that are directly and economically traceable as an integral part of a product, are called:

• A) direct materials costs.
• B) direct labour costs.
• C) factory overhead costs.
• D) cost of sales.

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Definitions:

Chronological Age

The actual age of an individual or object, measured in units of time since birth or creation.

Cognitive Abilities

Mental capabilities encompassing reasoning, problem-solving, planning, abstract thinking, complex idea comprehension, learning from experience, and more.

Encoding

The initial learning of information; it is the process of converting sensory input into a form that is able to be processed and stored in the brain.

Factor

A condition or quality that brings about a result—in this case, “intelligent” behavior. A cluster of related items, such as those found on an intelligence or personality test.