Total manufacturing costs is comprised of ________.
A) direct materials costs and period costs
B) direct materials costs, direct manufacturing labor costs, and manufacturing overhead costs
C) indirect materials costs, indirect manufacturing labor costs, and manufacturing overhead costs
D) prime costs and period costs

Question

Quizplus · Accepted Answer

Total manufacturing costs include the costs of direct materials, direct manufacturing labor, and manufacturing overhead costs. This is because these costs are directly involved in the production of goods, whereas indirect costs such as period costs are not directly involved in the production process. Prime costs refer to the sum of direct materials and direct labor costs, which are a subset of total manufacturing costs.

Total Manufacturing Costs Is Comprised of ________