ECONOMICS

Detailed explanation-1: -The given statement is false. Not only direct manufacturing costs are assigned to inventories and cost of goods sold. Explanation: Manufacturing costs include both, direct costs and indirect costs, incurred during production which is allocated to the cost of goods sold and ending inventory.

Detailed explanation-2: -The cost of raw material and labor required to manufacture a product would be categorized as direct costs. Indirect costs are fixed expenses a business incurs to keep the company running no matter the activity level.

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

Detailed explanation-4: -In manufacturing companies, manufacturing overhead includes all manufacturing costs except those accounted for as direct materials and direct labor. Manufacturing overhead costs are manufacturing costs that must be incurred but that cannot or will not be traced directly to specific units produced.

Detailed explanation-5: -Manufacturing costs are the costs incurred during the production of a product. These costs include the costs of direct material, direct labor, and manufacturing overhead. The costs are typically presented in the income statement as separate line items.