The expressions total manufacturing costs and total cost of goods manufactured are not synonymous.

Question

Quizplus · Accepted Answer

Total manufacturing costs refer to all costs incurred in the production process, including direct materials, direct labor, and manufacturing overhead. On the other hand, the total cost of goods manufactured includes only the manufacturing costs associated with the goods produced during the period. It does not include non-manufacturing costs such as selling, administrative, or interest expenses. Therefore, the two expressions are not the same.

The Expressions Total Manufacturing Costs and Total Cost of Goods