Question

Total manufacturing costs incurred during the year do not include:Multiple Choicea. Direct materials used.b. Shipping costs.c. Direct labor.d. Depreciation of factory machinery.e. Factory utilities.

Answer 1

Total manufacturing costs incurred during the year do not include shipping costs.

Step-by-step explanation:

Total manufacturing costs incurred during the year do not include shipping costs.

Direct materials used, direct labor, depreciation of factory machinery, and factory utilities are all considered part of the total manufacturing costs.

Answer 2

B. Shipping costs are not included in total manufacturing costs, while direct materials used, direct labor, depreciation of factory machinery, and factory utilities are.

Step-by-step explanation:

Total manufacturing costs incurred during the year do not include shipping costs. In manufacturing, shipping costs are typically excluded from total manufacturing costs. Direct materials used, direct labor, depreciation of factory machinery, and factory utilities are considered part of these costs.

While direct materials and labor directly contribute to the product, the other expenses, such as machinery depreciation and utilities, are associated with the production facility. Excluding shipping costs from total manufacturing costs provides a clearer picture of the expenses directly linked to the production process within the factory.