BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

ACCOUNTING FOR MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following are manufacturing costs?
A
Overhead and marketing costs
B
Direct raw material costs and direct labor costs
C
Administrative and direct labor costs
D
Marketing and administrative costs
Explanation: 

Detailed explanation-1: -Its product costs may include: Direct material: The cost of wood used to create the tables. Direct labor: The cost of wages and benefits for the carpenters to create the tables. Manufacturing overhead (indirect material): The cost of nails used to hold the tables together.

Detailed explanation-2: -Manufacturing costs fall into three broad categories of expenses: materials, labor, and overhead.

Detailed explanation-3: -Direct Costs Examples Direct materials. Manufacturing supplies. Wages for the production staff.

Detailed explanation-4: -Direct Costs A direct cost includes raw materials, labor, and expense or distribution costs associated with producing a product. The cost can easily be traced to a product, department, or project.

Detailed explanation-5: -Examples of direct costs include direct labour, materials, wages, commissions, and manufacturing supplies. Indirect costs are likely to be fixed costs that include rent, insurance, quality control costs, depreciation, and the salaries of production supervisors and managers.

There is 1 question to complete.