Direct materials and direct labor are the only product costs.

Direct Materials

Raw materials that are directly traceable to the manufacturing of products and significantly contribute to the product's cost.

Direct Labor

Direct labor costs are the wages and related expenses paid to employees who directly work on the production of goods or services.

Product Costs

Direct costs attributable to the production of goods, including direct labor, materials, and manufacturing overhead, capitalized as inventory and then expensed as sold.

Comprehend the difference between direct and indirect expenses as they pertain to the costing of products.
Acquire insight into how raw materials, direct labor, and overhead expenses affect the cost of manufactured goods.

Verified Answer

Jahed ShibloJul 06, 2024

Final Answer :

False

Explanation :

Product costs include direct materials, direct labor, and manufacturing overhead.

Learning Objectives

Comprehend the difference between direct and indirect expenses as they pertain to the costing of products.
Acquire insight into how raw materials, direct labor, and overhead expenses affect the cost of manufactured goods.

Direct materials and direct labor are the only product costs.

Definitions

Learning Objectives

Learning Objectives

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