Asked by Hannah Hanson on May 17, 2024
Verified
Identify and describe the three categories of manufacturing costs.
Manufacturing Costs
The total expenses involved in the manufacture of products, including direct materials, direct labor, and manufacturing overhead.
- Elucidate on the different categories of stock kept by manufacturers and their objectives.
Verified Answer
FK
Faisal KassabMay 20, 2024
Final Answer :
The three basic cost elements in accounting for manufactured goods are direct material costs,direct labor costs,and factory overhead costs.Direct materials are tangible components of a finished product,separately and readily traced through the manufacturing process to finished goods.Direct labor is the efforts of employees who physically convert materials to finished products.Factory overhead consists of all manufacturing costs that are not direct materials or direct labor.
Learning Objectives
- Elucidate on the different categories of stock kept by manufacturers and their objectives.
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