Manufacturing costs include all of the following EXCEPT:
A)both inventoriable and period costs.
B)both direct and indirect costs.
C)both variable and fixed costs.
D)costs incurred inside the factory.

Question

Quizplus · Accepted Answer

Manufacturing costs typically include direct and indirect costs, variable and fixed costs, and costs incurred inside the factory. However, they do not encompass both inventoriable costs and period costs simultaneously. Inventoriable costs are those that are capitalized as inventory on the balance sheet until the product is sold, at which point they become cost of goods sold. Period costs, on the other hand, are all the other costs that are not capitalized as inventory but are expensed in the period they are incurred, such as selling, general, and administrative expenses.

Manufacturing Costs Include All of the Following EXCEPT