Manufacturing costs not considered to be closely associated with production are called

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Period costs are costs that are not directly related to the production of goods and services, such as selling and administrative expenses. Product costs, on the other hand, are directly related to the production of goods and include both direct materials and direct labor costs as well as factory overhead costs. Absorption costs are a type of product cost that includes all of the direct and indirect costs associated with producing a product. Variable costs are costs that vary with changes in the level of production, such as materials and labor costs.

Manufacturing Costs Not Considered to Be Closely Associated with Production