Ortego's management recently committed to incurring direct labor and all manufacturing overhead charges regardless of the number of units produced.Under throughput costing,the company's cost of goods sold would include charges for:
A)selling and administrative costs.
B)direct materials.
C)direct labor and manufacturing overhead.
D)direct materials,direct labor,and manufacturing overheaD.
E)direct materials,direct labor,manufacturing overhead,and selling and administrative costs.

Question

Quizplus · Accepted Answer

Under throughput costing, only direct materials are included in the cost of goods sold. Direct labor and manufacturing overhead are treated as period costs and are not included in the cost of goods sold.

Ortego's Management Recently Committed to Incurring Direct Labor and All