Question

If we are covering labor and overhead costs of an item in a Managerial Accounting course, we are referring to which concepts?

Answer 1

Answer: D. Manufacturing cost

Step-by-step explanation:

Manufacturing costs include all costs related to the production of a good. This includes direct costs such as direct labor and material and also manufacturing overheads such as assembly line manager salary.

When talking about both labor and overhead costs in relation to a good in managerial accounting, the relevant concept is therefore manufacturing costs as it envelops the two terms.