In a traditional volume-based cost system,total manufacturing costs are calculated by
A)adding manufacturing overhead cost,direct material cost,and direct labor cost.
B)subtracting manufacturing overhead from selling price.
C)adding direct material cost and direct labor cost.
D)adding activity cost,direct material cost,and direct labor cost.

Question

Quizplus · Accepted Answer

In a traditional volume-based cost system, the total manufacturing costs are calculated by adding the cost of direct materials, direct labor, and manufacturing overhead costs. This is done by using a predetermined overhead rate based on a specific allocation base, such as direct labor hours or machine hours. The sum of these costs represents the total cost of manufacturing the products during a given period.

In a Traditional Volume-Based Cost System,total Manufacturing Costs Are Calculated