Manufacturing overhead is also referred to as:
A)indirect manufacturing costs.
B)direct costs.
C)prime costs.
D)period costs.

Question

Quizplus · Accepted Answer

Manufacturing overhead refers to indirect manufacturing costs, such as rent, utilities, and equipment maintenance. Direct costs refer to the costs directly associated with the production of goods, such as materials and labor costs. Prime costs refer to the combination of direct material and direct labor costs. Period costs refer to expenses incurred in the normal course of business that are not directly associated with production, such as advertising and administrative expenses.

Manufacturing Overhead Is Also Referred to As