The three major categories of manufacturing costs are
A) prime costs, direct materials and factory overhead.
B) direct labour, factory overhead and direct materials.
C) indirect labour, indirect materials and conversion costs.
D) prime costs, period costs, and product costs.

Question

Quizplus · Accepted Answer

Direct labour, factory overhead, and direct materials are the three major categories of manufacturing costs. Direct labour refers to the salary or wages paid to those who directly work on the production of a product, factory overhead includes all other costs of running a factory or manufacturing facility, and direct materials refer to the raw materials or components used in the production process.

The Three Major Categories of Manufacturing Costs Are