Final answer:
Directly traceable non-manufacturing costs can be directly linked to specific non-production activities, such as sales commissions. Indirectly traceable costs, or overheads, include items like utilities and office depreciation. Measuring true costs can be challenging in controlled economies and can be involved in anti-dumping disputes.
Step-by-step explanation:
Directly traceable non-manufacturing costs are expenses that can be directly associated with specific activities or areas of a business that are not involved in the production process. For instance, sales commissions and shipping costs can be directly linked to the sale and delivery of the final product. On the other hand, indirectly traceable non-manufacturing costs, also known as overheads, are costs that support the business operations but do not directly relate to any specific product or service.
Examples include utilities for office buildings, depreciation of office equipment, and salaries of administrative staff. In contexts like China where the government controls prices, measuring the true cost of production becomes challenging due to potential price distortions. Moreover, in international trade, anti-dumping cases can result from domestic industries claiming that foreign competitors are selling goods at unfairly low prices. These cases may lead to tariffs or quotas which protect domestic industries, rather than reflect the true costs of production incurred by foreign competitors.