Which of the following statements regarding manufacturing costs is false?

Multiple Choice

• Direct materials costs can be cost-effectively traced to finished goods.

• Indirect labor relates to labor costs that can be cost-effectively traced to finished goods.

• Factory overhead includes all manufacturing costs that are not direct materials or direct labor.

• Factory overhead costs cannot be cost-effectively traced to finished goods.

• Indirect materials are materials used in manufacturing that cannot be cost-effectively traced to finished goods.