The three major cost of manufacturing a product are:
A)Marketing,selling,and administrative costs.
B)Indirect labor,indirect materials,and fixed expenses.
C)Direct materials,direct labor,and factory overhead.
D)Product costs,period costs,and variable costs.
E)General,selling,and administrative costs.

Question

Quizplus · Accepted Answer

Direct materials, direct labor, and factory overhead are the three major cost components of manufacturing a product. Direct materials are the raw materials that go into the production of the product. Direct labor is the cost associated with the labor required in the manufacturing process. Factory overhead includes all other costs associated with manufacturing such as utilities, rent, and equipment maintenance.

The Three Major Cost of Manufacturing a Product Are