Asked by
Randy Santiago IRizarry
on Nov 18, 2024Verified
Direct labor and direct materials are
A) product costs and expensed when the goods are sold
B) product costs and expensed when incurred
C) period costs and expensed when incurred
D) period costs and expensed when the goods are sold
Product Costs
Expenses directly associated with the production of goods, including materials, labor, and factory overhead.
Direct Labor
The labor costs of all employees actually engaged in producing or directly working on a product.
Direct Materials
Raw materials that are directly used in the production of a product and can be easily traced back to the product.
- Acquire insight into the separation of direct and indirect costs in a manufacturing context.
- Differentiate between period and product costs, understanding their implications for financial statements.
Verified Answer
LS
Learning Objectives
- Acquire insight into the separation of direct and indirect costs in a manufacturing context.
- Differentiate between period and product costs, understanding their implications for financial statements.