Company's controller is calculating the current month's cost of goods manufactured.Which of the following should be considered as part of the calculation?
A)Direct labor and indirect costs.
B)Indirect labor and commission expenses.
C)Manufacturing overhead and the corporate vice president's salary.
D)Cost of materials used and finished goods inventory.

Question

Quizplus · Accepted Answer

Direct labor and indirect costs are components of the cost of goods manufactured. Direct labor refers to the labor costs directly associated with the production of goods, while indirect costs include manufacturing overhead, which encompasses all production costs not directly tied to the production of goods but necessary for the manufacturing process.

Company's Controller Is Calculating the Current Month's Cost of Goods