Manufacturing costs typically consist of:

Question

Quizplus · Accepted Answer

Manufacturing costs typically consist of direct materials, direct labor, and manufacturing overhead. Direct materials are the raw materials used in production, such as wood, metal, or plastic. Direct labor is the cost of the workers who are involved in the production process, such as machine operators, assembly line workers, or welders. Manufacturing overhead includes all the other costs associated with producing the product, such as rent, utilities, depreciation, and insurance. So, option C is the best choice as it includes all three main manufacturing costs.

Manufacturing Costs Typically Consist Of