The total manufacturing cost consists of the costs for materials used, labor, and ________.
A)Overhead cost
B)Average cost
C)Step cost
D)Prime cost

Question

Quizplus · Accepted Answer

Overhead cost refers to indirect expenses that cannot be directly attributed to the production process such as rent, utilities, and maintenance. Therefore, the correct answer is A) overhead cost. B) Average cost is a measure of the total cost of production per unit of output. C) Step cost refers to costs that increase stepwise as production levels increase such as hiring additional workers. D) Prime cost refers to the direct costs of production such as raw materials and labor.

The Total Manufacturing Cost Consists of the Costs for Materials