Question

Manufacturing costs include:_________

a) direct materials and direct labor only
b) direct material and manufacturing overhead only
c) direct labor and manufacturing overhead only
d) direct materials, direct labor, and manufacturing overhead

Answer 1

d) direct materials, direct labor, and manufacturing overhead.

Step-by-step explanation:

For a product to be manufactured there are certain cost to be considered this cost can be called the Manufacturing cost, this cost is the total cost to be faced with during the manufacturing process before the product is ready to be sent to the final consumer. The three important cost usually faced with are:

*Direct materials:- this are the cost required inorder to get the necessary raw materials for the manufacturing process.

*Direct labour:- this are the cost incurred to finance the manpower required in the manufacturing process.

*Manufacturing overhead:- this is usually the cost incurred due to the depreciation on the equipment used during the manufacturing process.

Answer 2

D (direct materials, direct labor and manufacturing overhead)

Explanation: The Manufacturing cost of a item is the cost incurred during the production of that item. It is the summation of all the resources used in the process of making a product. Manufacturing cost includes direct materials cost, direct labor cost and manufacturing overhead. The cost of these thimgs put together makes up the manufacturing cost.