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At first, you can barely concentrate in your psychology class because the guy sitting behind you is eating a hamburger smothered in onions. After a minute, you no longer notice the smell of his sandwich because:
Factory Overhead
All indirect costs associated with manufacturing, excluding direct labor and direct materials.
Utilities Incurred
Costs accumulated from the consumption of utility services such as electricity, water, and gas.
Selling and Administrative Expense
Combined costs related to the selling of goods and the general administrative activities of a company, excluding production costs.
Direct Materials
Raw materials that are consumed in the production process and can be directly attributed to specific products.
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