In Activity-Based Costing,some Manufacturing Costs May Be Excluded from Product

question 28

True/False

In activity-based costing,some manufacturing costs may be excluded from product costs.

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Definitions:

Casting

A manufacturing process where a liquid material is poured into a mold and solidifies to take on a specific shape.

Finishing

is the process of completing the final stages of manufacturing to prepare products for sale, such as painting, polishing, or packaging.

Direct Labor-Hours

The total number of work hours spent by employees who are directly involved in the manufacturing process.

Traditional Costing

An accounting method that allocates overhead costs to products based on a predetermined rate, often labor or machine hours.