Total Manufacturing Costs Incurred During the Year Do Not Include

question 73

Multiple Choice

Total manufacturing costs incurred during the year do not include:

• A) Direct labor.
• B) Depreciation of factory machinery.
• C) Direct materials used.
• D) Work in Process inventory, beginning balance.
• E) Factory supplies used.

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Definitions:

Mixed Cost

A cost that contains both variable and fixed cost elements, changing with the level of production or sales but not in direct proportion.

Electrical Cost

The expense associated with the consumption of electrical energy or the cost related to electrical work in construction or maintenance.

Production Volume

The total quantity of goods or products manufactured within a specific period.

Variable Manufacturing Cost

Costs that vary directly with the level of production output, such as raw materials and direct labor costs.