Production costs are costs associated with manufacturing goods or providing services and are classified as direct materials, direct labor, and overhead.

Question

Quizplus · Accepted Answer

This statement is true. Production costs can be classified into three main categories: direct materials, direct labor, and overhead. Direct materials are the raw materials used in the production process, direct labor is the cost of labor necessary to produce the goods or services, and overhead includes other costs such as rent, utilities, and equipment.

Production Costs Are Costs Associated with Manufacturing Goods or Providing