Question

Manufacturing costs include which of the following? (Select all that apply)

1) Direct labor
2) Direct materials
3) Manufacturing overhead
4) Administrative costs
5) Selling costs

Answer 1

Manufacturing costs include direct labor, direct materials, and manufacturing overhead.

Step-by-step explanation:

Manufacturing costs include direct labor, direct materials, and manufacturing overhead. Direct labor refers to the wages paid to workers who directly produce goods. Direct materials include the raw materials used in the manufacturing process. Manufacturing overhead includes all other costs incurred in the manufacturing process, such as factory rent, utilities, and equipment maintenance.