Which of the following are production costs?
A) direct materials, direct labour, and selling costs
B) selling costs, administrative costs, and period costs
C) indirect materials, indirect labour, and administrative costs
D) direct materials, direct labour, and manufacturing overhead

Question

Quizplus · Accepted Answer

Direct materials, direct labour, and manufacturing overhead are all production costs. Direct materials and direct labour are tied directly to the product being manufactured, while manufacturing overhead includes other costs associated with the production process such as rent, utilities, and equipment depreciation. Selling costs, administrative costs, and period costs are not considered production costs as they are not directly tied to the production of the product. Indirect materials, indirect labour, and administrative costs are also not production costs as they are not directly tied to the production process itself.

Which of the Following Are Production Costs