Which costs are directly attributable to the production of goods?

The choice identifying direct costs as the correct answer highlights their specific nature in relation to manufacturing. Direct costs are expenses that can be traced directly to a particular product or service, making them essential for understanding the total cost of production. These costs typically include raw materials, direct labor, and any other expenses that are inherent to manufacturing the goods.

Understanding direct costs is crucial for managerial accounting because they provide insight into how resources are allocated in the production process. By accurately identifying and managing these costs, businesses can enhance their pricing strategies, forecast budgets more accurately, and improve their overall profitability.

In contrast, variable costs refer to costs that change with the level of production but may include both direct and indirect costs. Indirect costs, on the other hand, cannot be directly attributed to a specific product and often include overhead expenses such as utilities or rent. Period costs are expenses not tied to production but rather incurred during a specific time period, such as selling and administrative costs. Therefore, direct costs are the most relevant to the query about expenses that are directly attributable to the production of goods.