Manufacturing costs are generally classified into which of the following categories?
A)relevant costs and irrelevant costs
B)direct materials,direct labor,and manufacturing overhead
C)prime costs and conversion costs
D)conversion costs,marketing costs,and administrative costs

Question

Quizplus · Accepted Answer

Manufacturing costs are generally classified into three categories: direct materials, direct labor, and manufacturing overhead. Direct materials are the raw materials and components that are used in the production process. Direct labor includes the wages, salaries, and benefits paid to the workers who are involved in the production process. Manufacturing overhead includes all the indirect costs associated with the production process, such as rent, utilities, and depreciation of equipment. Together, these three categories of manufacturing costs provide a comprehensive picture of the costs involved in producing a product.

Manufacturing Costs Are Generally Classified into Which of the Following