What types of costs are incurred in a process costing system?

Question

Quizplus · Accepted Answer

In a process costing system, all three types of costs are incurred. Direct material refers to the raw materials used in production, direct labor refers to the wages paid to workers who are directly involved in the production process, and manufacturing overhead refers to all indirect costs associated with the production process, such as utilities and equipment maintenance. Therefore, the best choice is D - direct material, direct labor, and manufacturing overhead.

What Types of Costs Are Incurred in a Process Costing