In the cost classification system used by manufacturing firms, total manufacturing costs would include all of the following EXCEPT:
A)direct materials costs and conversion costs
B)direct materials costs, direct manufacturing labor costs, and manufacturing overhead costs
C)indirect materials costs, indirect manufacturing labor costs, and manufacturing overhead costs
D)prime costs and manufacturing overhead costs

Question

Quizplus · Accepted Answer

Total manufacturing costs include direct materials, direct labor, and manufacturing overhead. Indirect materials and indirect labor are part of manufacturing overhead, so option C is not a separate category in total manufacturing costs.

In the Cost Classification System Used by Manufacturing Firms, Total