Which one of the following items is normally not a manufacturing cost?
A) Direct labor.
B) Factory overhead.
C) General and administrative expenses.
D) Direct materials.
E) Conversion cost.

Question

Quizplus · Accepted Answer

General and administrative expenses are considered as non-manufacturing costs as they are not directly related to the production process. They include expenses such as salaries of management, accounting, and administrative personnel, office expenses, and legal expenses, which are not directly tied to the production of goods or services. The other options listed, including direct labor, factory overhead, direct materials, and conversion costs, are all manufacturing costs.

Which One of the Following Items Is Normally Not a Manufacturing