Question

Total manufacturing costs incurred during the year do not include:

Multiple Choice
a. Direct materials used.
b. Shipping costs.
c. Direct labor.
d. Depreciation of factory machinery.
e. Factory utilities.

Answer 1

Total manufacturing costs incurred during the year do not include shipping costs. The costs that are typically included in total manufacturing costs are direct materials used, direct labor, depreciation of factory machinery, and factory utilities.

Step-by-step explanation:

Total manufacturing costs incurred during the year do not include shipping costs. The costs that are typically included in total manufacturing costs are direct materials used, direct labor, depreciation of factory machinery, and factory utilities. Shipping costs are considered as part of distribution costs rather than manufacturing costs.