Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as:
A) factory overhead cost
B) miscellaneous expense
C) product costs
D) period cost

Question

Quizplus · Accepted Answer

Costs other than direct materials and direct labor cost incurred in the manufacturing process are known as factory overhead costs. These costs include indirect materials, indirect labor, supplies, utilities, rent, depreciation, and insurance for the factory. Factory overhead costs are also known as manufacturing overhead costs or indirect costs.

Costs Other Than Direct Materials Cost and Direct Labor Cost