Final answer:
The false statement is that direct labor cannot be easily traced to individual units of product, as it is typically easy to do so with variable costs like direct labor. The correct option is A.
Step-by-step explanation:
The statement "Direct labor cannot be easily traced to individual units of product" is the false statement among the options provided.
In cost accounting, direct labor is considered a variable cost since it changes with the level of output. This cost is usually easy to trace to individual units of product because you can directly associate the labor hours with the units produced.
A mixed cost, indeed, contains both variable and fixed cost elements. An example could be a utility bill that has a base charge plus a variable charge based on usage. Manufacturing overhead comprises various indirect costs like indirect materials and indirect labor.
Lastly, manufacturing costs include direct materials, direct labor, and manufacturing overhead, as these are the three main components of product cost in traditional cost accounting.