Product costs comprise:
A) direct materials, direct labour and manufacturing overhead.
B) direct materials and manufacturing overhead.
C) direct labour and manufacturing overhead.
D) direct materials and direct labour.

Question

Quizplus · Accepted Answer

Product costs include direct materials, direct labor, and manufacturing overhead. Direct materials and direct labor are direct costs that can be easily traced to specific products, while manufacturing overhead includes indirect costs such as rent, utilities, and depreciation that are necessary for production but cannot be easily traced to individual products.

Product Costs Comprise