Answered: Carriage inward on purchase of raw…

Carriage inward on purchase of raw material is classified as? a. Selling overheads b. Direct expense C Factory overheads. Od. Direct material

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 4MC: Which of the following is a conversion cost? A. raw materials B. direct labor C. sales commissions...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Carriage inward on purchase of raw material is classified as?

a. Selling overheads

b. Direct expense

C Factory overheads.

Od. Direct material

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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