The correct answer is A.
Direct materials are the raw materials that go into making a product. They are the primary components of a finished good and are easily traced to the finished product. Direct materials are a manufacturing cost because they are used in the production of a product.
Administrative costs are the costs of running a business that are not directly related to the production of a product. These costs include costs such as rent, utilities, and salaries for administrative staff.
Selling costs are the costs of selling a product. These costs include costs such as advertising, sales commissions, and shipping.
Distribution costs are the costs of getting a product to the customer. These costs include costs such as warehousing, transportation, and order processing.