Asked by
Tatiana Buruca
on Nov 13, 2024
Verified
If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.
Direct Materials Cost
The expense associated with the raw materials directly used in the manufacture of a product.
Employee Wages
Compensation paid to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.
Total Product Cost
The sum of all costs directly or indirectly related to creating a product, including material, labor, and overhead expenses.
- Differentiate among various cost categories, including direct materials, direct labor, and factory overhead.
Verified Answer
SC
Learning Objectives
- Differentiate among various cost categories, including direct materials, direct labor, and factory overhead.
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