The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Name: The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

Costs of materials and labor that do not directly enter into the finished product are classified as indirect costs and are not included in the cost of goods sold. They may be included in the overhead expenses or administrative expenses.

The Costs of Materials and Labor That Do Not Enter