The cost of a manufactured product generally consists of which of the following costs?
A) direct materials cost and factory overhead cost only
B) direct labor cost and factory overhead cost only
C) direct labor cost, direct materials cost, and factory overhead cost
D) direct materials cost and direct labor cost only

Question

Quizplus · Accepted Answer

The cost of a manufactured product consists of direct labor cost, direct materials cost, and factory overhead cost. Direct labor refers to the wages and salaries paid to employees who physically work on the product, while direct materials refer to the raw materials and components used to make the product. Factory overhead cost includes all other costs incurred in the manufacturing process, such as utilities, rent, and equipment maintenance. Therefore, choice C is the correct answer.

The Cost of a Manufactured Product Generally Consists of Which