The three major cost components of manufacturing a product are:
A)Marketing,selling,and administrative costs.
B)Indirect labor,indirect materials,and fixed expenses.
C)Direct materials,direct labor,and factory overhead.
D)Product costs,period costs,and variable costs.
E)General,selling,and administrative costs.

Question

Quizplus · Accepted Answer

Direct materials, direct labor, and factory overhead are the three major cost components of manufacturing a product. Direct materials refer to the raw materials that are used to make the product, direct labor refers to the wages and benefits paid to the workers who make the product, and factory overhead refers to all other indirect costs associated with manufacturing the product, such as rent, utilities, and depreciation on equipment.

The Three Major Cost Components of Manufacturing a Product Are