Manufacturing costs are usually combined into two categories in a process costing system. These two categories are
A)direct labor and conversion costs.
B)direct materials and conversion costs.
C)Manufacturing Overhead and conversion costs.
D)direct materials and direct labor.

Question

Quizplus · Accepted Answer

Direct materials and conversion costs are the two categories typically used in a process costing system. Direct materials are the costs of the materials used in the production process, while conversion costs include direct labor and any other costs associated with converting raw materials into finished products. Manufacturing overhead is also a cost category, but it is typically allocated to production based on a predetermined overhead rate, rather than being directly assigned to products.

Manufacturing Costs Are Usually Combined into Two Categories in a Process