Asked by Grant Burry on Jul 20, 2024
Verified
The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.
Factory Overhead Cost
All indirect costs associated with the manufacturing process, such as utilities, maintenance, and salaries for management.
Materials
Basic components or raw substances used in manufacturing processes or production.
- Evaluate the distinguishing factors among the costs related to direct materials, direct labor, and factory overhead.
Verified Answer
PK
Parisa KeivanJul 21, 2024
Final Answer :
False
Explanation :
The cost of materials entering directly into the manufacturing process is classified as direct materials cost, not factory overhead cost. Factory overhead cost includes indirect materials, indirect labor, and other indirect costs associated with the manufacturing process.
Learning Objectives
- Evaluate the distinguishing factors among the costs related to direct materials, direct labor, and factory overhead.