What type of cost typically represents a much higher percentage of product costs than direct labour?
A) activity costs
B) value-added costs
C) consumption costs
D) manufacturing overhead costs

Question

Quizplus · Accepted Answer

Manufacturing overhead costs typically include expenses such as rent, utilities, insurance, and equipment maintenance. These costs are necessary for the production process but cannot be directly traced to a specific product or unit of production, and therefore represent a much higher percentage of product costs than direct labor.

What Type of Cost Typically Represents a Much Higher Percentage