A New Industry That Came into Its Own During the Civil

question 47

Multiple Choice

A new industry that came into its own during the Civil War was

• A) textile manufacturing.
• B) the petroleum industry.
• C) wheat farming.
• D) foreign shipping.
• E) steel manufacturing.

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Definitions:

Product Costs

Product costs are the costs directly associated with the manufacturing of goods, including materials, labor, and overhead.

Period Costs

These are costs that are not directly tied to production and are expensed in the period they are incurred, such as selling, general, and administrative expenses.

Factory Overhead

All indirect costs associated with manufacturing, such as indirect labor, maintenance, and utilities, not directly tied to a specific product.

Direct Labor Hours

The total number of work hours spent by employees who directly manufacture or produce goods.