For a manufacturer all factory costs that are not directly traceable to products are classed as:

Question

Quizplus · Accepted Answer

Factory overhead includes all costs associated with the manufacturing process that are not directly traceable to the product. This can include costs like utilities, depreciation on factory equipment, and salaries of factory supervisors. Indirect materials are part of factory overhead, but not all factory overhead costs are indirect materials. Period costs are not directly tied to the manufacturing process and variable costs can be either direct or indirect, but not all are classified as factory overhead.

For a Manufacturer All Factory Costs That Are Not Directly