Manufacturing costs that cannot be classified as either direct materials or direct labor are known as
A) period costs.
B) nonmanufacturing costs.
C) selling and administrative expenses.
D) manufacturing overhead.

Question

Quizplus · Accepted Answer

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as manufacturing overhead. Examples of manufacturing overhead costs include depreciation on factory equipment, utilities, indirect labor (e.g. supervisors, janitors), and materials handling.

Manufacturing Costs That Cannot Be Classified as Either Direct Materials