Answer:
The correct answer is letter "D": direct material and conversion costs are traced to each batch of product produced.
Explanation:
The operation-costing system is based on the principle that in large entities where manufacturing is almost the same for all products, costs can be assigned to units produced and the result of adding all those costs should equal the costs assigned in groups of units produced or batches.
Conversion costs are a combination of direct labor and manufacturing overhead costs. Conversion costs are traced by adding the direct costs to the conversion costs of an operation day by the number of units produced in the day.
