All manufacturing costs incurred and assigned to products that are being produced are classified as
A)variable costs.
B)allocated costs.
C)product costs.
D)overhead costs.

Question

Quizplus · Accepted Answer

Product costs include all manufacturing costs incurred and assigned to products being produced, such as direct materials, direct labor, and manufacturing overhead. Variable costs refer to costs that vary in direct proportion to changes in production volume, allocated costs usually refer to indirect costs assigned to departments or products based on a predetermined allocation method, and overhead costs can include all indirect manufacturing costs, such as rent, utilities, and depreciation.

All Manufacturing Costs Incurred and Assigned to Products That Are