A manufacturing firm has manufacturing costs which become product costs. These manufacturing costs do not include:
A)direct material costs (or raw material costs)
B)direct labor costs
C)manufacturing overhead costs (sometimes called indirect manufacturing costs)
D)expenditures for administrative staff
E)expenditures for supervisors' salaries, factory utilities, property taxes, insurance, and depreciation on manufacturing plant and equipment

Question

Quizplus · Accepted Answer

Expenditures for administrative staff are not included in manufacturing costs or product costs. Manufacturing costs are costs specifically related to the production of goods, while administrative expenses are related to the overall operation of the business.

A Manufacturing Firm Has Manufacturing Costs Which Become Product Costs