Tracing Costs to Cost Objects

Question 1

Direct Cost

Answer 1

can be easily traced to cost pool/cost object

Question 2

Direct Costs include

Answer 2

Direct Raw Materials and Direct Labor

Question 3

Indirect Cost

Answer 3

Not easily traced to the cost pool/cost object

allocated to cost pools/objects using cost drivers that have relationship to these costs

Question 4

Indirect costs is also known as

Answer 4

Manufacturing Overhead

Question 5

Indirect Costs include

Answer 5

Indirect costs include indirect materials, indirect labor, and other indirect costs (machine maintenance costs)