The acquisition cost of manufactured inventories does not include which category of costs?
A)Administrative
B)Manufacturing Overhead
C)Raw Materials
D)Direct Materials
E)Direct Labor

Question

Quizplus · Accepted Answer

The acquisition cost of manufactured inventories includes direct materials, direct labor, and manufacturing overhead costs but does not include administrative costs. Administrative costs are generally considered period expenses and are not included as part of the cost of goods sold.

The Acquisition Cost of Manufactured Inventories Does Not Include Which