Other than raw materials and manufacturing overhead, what is the third component of inventories for manufacturing companies?
A) Direct labor
B) Indirect labor
C) Equipment cost
D) Processing cost
E) All of the above

Question

Quizplus · Accepted Answer

Direct labor is the third component of inventories for manufacturing companies, alongside raw materials and manufacturing overhead. It refers to the wages paid to workers directly involved in the production of goods.

Other Than Raw Materials and Manufacturing Overhead, What Is the Third