Asked by Sewar Rawabdeh on May 08, 2024
Verified
Manufacturing costs include direct labour, direct materials and all company-operating costs.
Manufacturing Costs
Costs associated with the production of goods, including direct materials, direct labor, and manufacturing overhead.
Direct Labour
The work done by employees directly involved in manufacturing a product or delivering a service, typically accounted for as a variable cost.
Direct Materials
Raw materials that can be directly traced to the manufacturing of a product in a cost-effective manner.
- Determine and describe the essential aspects of manufacturing expenditures, like materials, workforce, and indirect costs.
Verified Answer
TB
Tania BarbosaMay 15, 2024
Final Answer :
False
Explanation :
Manufacturing costs include direct labor, direct materials, and manufacturing overhead, but not all company-operating costs. Operating costs can include non-manufacturing expenses like marketing, sales, and administration.
Learning Objectives
- Determine and describe the essential aspects of manufacturing expenditures, like materials, workforce, and indirect costs.