Which of the following statements is true about production costs?
A) Production costs are broken down into direct materials, direct labor, and overhead
B) Production costs are those costs associated with selling and administration
C) Cost management systems identify product costs for internal financial reporting
D) Production costs are the same as average cost per unit
E) None of the above are true

Question

Quizplus · Accepted Answer

Production costs are typically categorized into direct materials, direct labor, and overhead, which are the costs directly associated with manufacturing a product.

Which of the Following Statements Is True About Production Costs