Costs That Are Incurred as Part of the Manufacturing Process

Multiple Choice

Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct material and direct labor costs, are called:

A) Administrative expenses.
B) Nonmanufacturing costs.
C) Sunk costs.
D) Factory overhead.
E) Preproduction costs.