The three costs in every product are
A) direct materials, work in process, and overhead.
B) direct materials, work in process, and finished goods.
C) direct materials, direct labor, and overhead.
D) direct materials, direct labor, and period costs.

Question

Quizplus · Accepted Answer

Direct materials, direct labor, and overhead are the three costs in every product. Direct materials are the raw materials that go into the product, direct labor is the wages and benefits paid to the workers who make the product, and overhead includes all other costs associated with production that cannot be directly attributed to a specific unit of product, such as rent, utilities, and machine maintenance.

The Three Costs in Every Product Are