Question

Although __________________ costs are important in management decision making, they are difficult to trace to a particular product. Group of answer choices Direct Material Direct Labor Overhead None of the cost above are important

Answer 1

Answer:

Overhead

Explanation:

Overhead costs are also known as indirect costs and they are can not be directly traced (by observation) to the cost object.

However, these overhead costs need to be accounted for when determining pricing of a product and when performing a Cost - Volume - Profit analysis.