Examlex
All of the following are associated with target costing EXCEPT:
Direct Materials
The cost of raw materials and components used directly in the production of goods.
Indirect Materials
Materials used in the production process that cannot be directly traced to the final product, such as lubricants and cleaning supplies, and are classified as overhead costs.
Manufacturing Overhead
Includes all manufacturing costs except direct materials and direct labor, covering expenses like utilities, depreciation, and equipment maintenance in a production facility.
Manufacturing Overhead
All indirect factory-related costs incurred while producing a product, excluding direct materials and direct labor.
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