The Cost of Materials Entering Directly into the Manufacturing Process

question 47

Multiple Choice

The cost of materials entering directly into the manufacturing process is classified as:

• A)direct labor cost.
• B)factory overhead cost.
• C)burden cost.
• D)direct materials cost.

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Definitions:

Product Cost

The total amount of costs associated with creating a product, including raw materials, labor, and overhead expenses.

Period Cost

Expenses that are incurred regardless of production levels, including selling, administrative, and other operating expenses.

Manufacturing Company

A type of business that produces finished goods from raw materials through the use of machinery and labor.

Product Cost

The total expenses incurred to create a product, including direct labor, materials, and manufacturing overhead.