The three major cost components of manufacturing a product are:
A) Marketing, selling, and administrative costs.
B) General, selling, and administrative costs.
C) Direct materials, direct labor, and factory overhead.
D) Product costs, period costs, and variable costs.
E) Indirect labor, indirect materials, and fixed expenses.

Question

Quizplus · Accepted Answer

Direct materials, direct labor, and factory overhead are the three major cost components of manufacturing a product. Direct materials refer to the raw materials used to make the product, direct labor refers to the wages and benefits paid to workers directly involved in producing the product, and factory overhead refers to indirect costs such as rent, utilities, and maintenance of the factory used in the manufacturing process.

The Three Major Cost Components of Manufacturing a Product Are