Asked by

Brandon Bisnath
on Nov 18, 2024

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If the cost of a direct material is a small portion of total production cost, it may be classified as part of

A) direct labor cost
B) selling and administrative costs
C) miscellaneous costs
D) factory overhead cost

Factory Overhead Cost

The indirect costs associated with manufacturing, including expenses such as electricity, maintenance, and salaries of supervisors.

Direct Material

Raw materials directly used in the production of goods, which are easily traceable to the finished product.

Total Production Cost

Represents the aggregate cost of goods produced, including direct materials, direct labor, and manufacturing overhead.

  • Distinguish between different types of costs (direct materials, direct labor, factory overhead).
  • Grasp the concept of factory overhead and its role in product costing.
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MR
martin RodriguezNov 21, 2024
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