What costs are not included in the cost of manufactured inventories?
A)Raw materials.
B)Labour to make the finished product.
C)Administrative costs.
D)Manufacturing overhead.

Question

Quizplus · Accepted Answer

Administrative costs are not directly associated with the production of inventory and are typically considered as separate overhead expenses. Raw materials and labor are both direct costs of manufacturing inventory, while manufacturing overhead is an indirect cost that includes expenses such as utilities, rent, and equipment maintenance.

What Costs Are Not Included in the Cost of Manufactured