Asked by Christopher Severson on May 30, 2024
Verified
The statement of cost of goods manufactured does NOT include:
A) direct labor costs.
B) selling and administrative costs.
C) manufacturing overhead.
D) All of the above are included.
Selling And Administrative Costs
Expenses related to the selling of products and the administrative aspects of a business, excluding production costs.
Direct Labor Costs
The expenses that a company incurs through the wages paid to workers directly involved in manufacturing goods or providing services.
Manufacturing Overhead
Indirect factory-related costs that are incurred when a product is manufactured, including costs such as depreciation, utilities, and salaries for supervisors.
- Differentiate between manufacturing and non-manufacturing costs.
Verified Answer
SG
sanchit gangwalMay 31, 2024
Final Answer :
B
Explanation :
The statement of cost of goods manufactured includes direct labor costs, manufacturing overhead, and direct materials used in production, but it does not include selling and administrative costs, which are considered period costs and not product costs.
Learning Objectives
- Differentiate between manufacturing and non-manufacturing costs.