Question

Direct materials and direct labor are both ______ costs.

1) nonmanufacturing
2) period
3) manufacturing
4) selling and administrative

Answer 1

Direct materials and direct labor are both manufacturing costs.

Step-by-step explanation:

In the context of business costs, direct materials and direct labor are both manufacturing costs. Manufacturing costs are expenses directly related to the production process. Direct materials are the raw materials and components used to make a product, while direct labor refers to the wages and benefits paid to workers involved in the production process.