Answer (A) is correct.
Direct costs may be defined as those that can be specifically associated
with a single cost object and can be assigned to it in an economically
feasible manner. Wages paid to labor that can be identified with a
specific finished good are direct costs. Value-adding costs may be
defined as the costs of activities that cannot be eliminated without
reducing the quality, responsiveness, or quantity of the output required
by a customer or by an organization. Clearly, the amounts paid to
programmers add value to computer programs.