Question

Which of the following is not a manufacturing cost category?

1) Direct materials
2) Direct labor
3) Indirect materials
4) Selling expenses

Answer 1

The correct answer is selling expenses. They are not categorized as a manufacturing cost; instead, they are associated with the selling and administrative functions of a company.

Step-by-step explanation:

Manufacturing Cost Categories vs. Non-Manufacturing Expenses

The manufacturing cost categories typically include direct materials, direct labor, and indirect materials. These are the costs directly associated with the production of goods. However, selling expenses are not included as a manufacturing cost category. Selling expenses are considered a period cost, and while they are necessary for the selling and administrative functions of a company, they do not directly relate to the manufacturing or production of goods.