Multiple Choice
Which of the following is an element of inventory holding costs?
3
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4. Merchandising Operations
Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
The cost of a manufactured product generally consists of which of the following costs?
A
Direct materials, selling expenses, and administrative expenses
B
Direct labor, administrative expenses, and marketing costs
C
Direct materials, direct labor, and manufacturing overhead
D
Manufacturing overhead, selling expenses, and direct materials
Verified step by step guidance1
Understand the components of the cost of a manufactured product. These costs typically include all expenses directly related to the production process.
Learn the three main categories of manufacturing costs: Direct materials, Direct labor, and Manufacturing overhead. These are the costs incurred to create a product.
Direct materials refer to the raw materials that are directly used in the production of the product. For example, wood for furniture or fabric for clothing.
Direct labor includes the wages and salaries of workers who are directly involved in manufacturing the product, such as assembly line workers.
Manufacturing overhead encompasses all indirect costs related to production, such as factory rent, utilities, equipment depreciation, and indirect labor. Selling and administrative expenses are not included in manufacturing costs.
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Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory practice set
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