Manufacturing overhead costs are also referred to as:
A)indirect manufacturing costs
B)prime costs
C)period costs
D)direct material

Question

Quizplus · Accepted Answer

Manufacturing overhead costs are indirect manufacturing costs, which are costs that are necessary for the manufacturing process but cannot be directly traced to specific products or services. Examples include rent, utilities, and depreciation. Prime costs are the sum of direct materials and direct labor costs, period costs are non-manufacturing costs like marketing and administrative expenses, and direct material refers to raw materials that are directly used in the manufacturing process.

Manufacturing Overhead Costs Are Also Referred to As