Which of the following equations is correct?
A)Total Manufacturing Costs = Direct Materials + Direct Labor + Selling Costs
B)Total Manufacturing Costs = Direct Materials + Direct Labor + Overhead
C)Total Manufacturing Costs = Direct Labor + Overhead + Selling Costs + Administrative Costs
D)Total Manufacturing Costs = Product Costs + Period Costs

Question

Quizplus · Accepted Answer

Total Manufacturing Costs consist of Direct Materials, Direct Labor, and Overhead. Selling Costs and Administrative Costs are not part of manufacturing costs. Product Costs include Direct Materials, Direct Labor, and Manufacturing Overhead while Period Costs include Selling Costs and Administrative Costs.

Which of the Following Equations Is Correct