Asked by
Brandon Bisnath
on Nov 18, 2024Verified
If the cost of a direct material is a small portion of total production cost, it may be classified as part of
A) direct labor cost
B) selling and administrative costs
C) miscellaneous costs
D) factory overhead cost
Factory Overhead Cost
The indirect costs associated with manufacturing, including expenses such as electricity, maintenance, and salaries of supervisors.
Direct Material
Raw materials directly used in the production of goods, which are easily traceable to the finished product.
Total Production Cost
Represents the aggregate cost of goods produced, including direct materials, direct labor, and manufacturing overhead.
- Distinguish between different types of costs (direct materials, direct labor, factory overhead).
- Grasp the concept of factory overhead and its role in product costing.
Verified Answer
MR
Learning Objectives
- Distinguish between different types of costs (direct materials, direct labor, factory overhead).
- Grasp the concept of factory overhead and its role in product costing.