Which of the following costs would be included in the costs of inventory of a manufacturer?
A)Sales salaries.
B)Electricity for the office building.
C)Wages for factory workers.
D)Wages for administrative staff.

Question

Quizplus · Accepted Answer

The costs of inventory of a manufacturer primarily consist of the direct costs incurred during the manufacturing process, such as the wages for factory workers, raw materials and supplies, and other manufacturing-related expenses. Costs such as sales salaries and wages for administrative staff would not be included in the costs of inventory. Similarly, the cost of electricity for the office building would be considered an indirect cost that is not directly related to the manufacturing process.

Which of the Following Costs Would Be Included in the Costs