Question

____ are all manufacturing costs that are related to the cost object but cannot be traced to that cost object?

1) Direct Materials Cost
2) Period Costs
3) Indirect manufacturing costs
4) Direct manufacturing labor costs

Answer 1

Indirect manufacturing costs are those related to production that cannot be directly traced to a specific product or service, such as factory overhead.

Step-by-step explanation:

The costs that are related to the cost object but cannot be traced directly to that cost object are referred to as indirect manufacturing costs. These costs are incurred in the process of producing a product or providing a service but are not directly attributable to a specific product, service, or unit of production. Examples include factory overhead like the salaries of plant managers, depreciation of factory equipment, and utility costs of the factory. Indirect costs contrast with direct materials cost and direct manufacturing labor costs, which can be directly traced to the production of specific goods or services.