Which of the following should not be included in the computation of cost of goods manufactured?
A)Factory power costs
B)Indirect materials costs
C)Selling costs
D)Direct materials costs

Question

Quizplus · Accepted Answer

Cost of goods manufactured only includes the cost of producing the goods, such as direct materials, direct labor, and factory overhead. Selling costs are not part of the cost of production, but rather a separate expense incurred to sell the goods.

Which of the Following Should Not Be Included in the Computation