Asked by kkoln kkijknjn on Jul 20, 2024
Verified
The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.
Cost of Goods Sold
The total cost associated with making or acquiring any goods sold during a specific period, including materials, labor, and overhead.
Materials
The physical components or substances used in the production of goods.
Labor
The effort by human workers in producing goods or providing services, often considered in terms of workforce or employment.
- Identify the distinctions between period costs and how they are allocated in financial reports.
Verified Answer
KW
Kaylan WilsonJul 21, 2024
Final Answer :
False
Explanation :
Costs of materials and labor that do not directly enter into the finished product are classified as indirect costs and are not included in the cost of goods sold. They may be included in the overhead expenses or administrative expenses.
Learning Objectives
- Identify the distinctions between period costs and how they are allocated in financial reports.