Question

Nonmanufacturing costs are often divided into two categories: ________

1) Direct costs and indirect costs
2) Fixed costs and variable costs
3) Product costs and period costs
4) Operating costs and non-operating costs

Answer 1

Nonmanufacturing costs are often divided into direct costs and indirect costs.

Step-by-step explanation:

Nonmanufacturing costs are often divided into two categories: Direct costs and indirect costs. Direct costs are expenses that can be clearly and directly traced to the production of a specific product or service, such as the cost of raw materials. Indirect costs, on the other hand, are expenses that cannot be easily traced to a specific product or service but are necessary for the overall operation of the business, such as rent or utilities.