Asked by Shriyam Jairath on Apr 28, 2024
Verified
Opportunity costs at a manufacturing company are not part of manufacturing overhead.
Opportunity Costs
The potential benefit missed out on when choosing one alternative over another.
- Comprehend the classification of diverse operational expenditures, including selling, administrative, and manufacturing overhead.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
True
Explanation :
Opportunity costs represent the benefits a company misses out on when choosing one alternative over another and are not actual cash outflows, hence they are not included in manufacturing overhead costs.
Learning Objectives
- Comprehend the classification of diverse operational expenditures, including selling, administrative, and manufacturing overhead.