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 major categories - direct materials, direct labor, and manufacturing overhead. Direct materials are the raw materials or supplies that are used in the production process, whereas direct labor is the cost of labor that can be directly traced to the production of goods. Manufacturing overhead, also known as indirect costs, are costs that cannot be easily traced to specific products or services, such as rent, utilities, and insurance.

Manufacturing Costs Are Generally Classified into Which of the Following