Manufacturing costs other than direct materials and direct labor, and are not readily traceable to specific units or batches of production are called:
A) Factory overhead.
B) Prime costs.
C) Administrative expenses.
D) Nonmanufacturing costs.
E) Preproduction costs.

Question

Quizplus · Accepted Answer

These costs are referred to as factory overhead or manufacturing overhead, which include indirect materials, indirect labor, factory utilities, rent, depreciation, maintenance, and other miscellaneous expenses that cannot be directly attributed to a specific unit of production or batch.

Manufacturing Costs Other Than Direct Materials and Direct Labor, and Are