Manufacturing overhead can be categorized as
A)a prime cost and a period cost.
B)a conversion cost and a period cost.
C)a prime cost and a product cost.
D)a conversion cost and a product cost.

Question

Quizplus · Accepted Answer

Manufacturing overhead includes all costs associated with the manufacturing process that cannot be directly traced to a specific unit of production, such as indirect materials, indirect labor, and factory overhead. These costs are necessary to produce a product and are therefore considered a product cost. Additionally, they are part of the conversion process, which involves converting raw materials into a finished product, making them a conversion cost.

Manufacturing Overhead Can Be Categorized as