BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Advertising cost
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Product research cost
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Clerkâs salary
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Transportation cost
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Detailed explanation-1: -Manufacturing costs fall into three broad categories of expenses: materials, labor, and overhead.
Detailed explanation-2: -Production cost refers to all of the expenses associated with a company conducting its business while manufacturing cost represents only the expenses necessary to make the product. Whereas production costs include both direct and indirect costs of operating a business, manufacturing costs reflect only direct costs.
Detailed explanation-3: -Under the variable costing method, only the variable cost to produce is considered as a product cost. All other costs incurred will be treated as period costs. A product cost is capitalized as an inventory cost while a period cost is expensed outright.
Detailed explanation-4: -Production cost factors typically include labor, raw materials, equipment, rent, and other supplies or overhead.