
Concept explainers
Which 01 the following is not considered a cost of manufacturing a product
A. Direct materials cost
B.
C. Sales salaries
D. Direct labor cost

Concept Introduction:
Direct and Indirect Costs:
Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.
Manufacturing overhead costs:
Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads.
To choose:
The cost which is not considered as cost of manufacturing a product
Answer to Problem 1SEQ
C. Sales Salaries
Explanation of Solution
Explanation for correct answer:
Sales Salaries are considered as administrative costs and not the manufacturing costs. Hence option c is the right answer.
Explanation for incorrect answers:
A. Direct Material cost is a manufacturing cost. Hence option A is incorrect answer.
B. Factory overhead cost is a manufacturing cost. Hence option B is incorrect answer.
D. Direct labor cost is a manufacturing cost. Hence option D is incorrect answer.
Want to see more full solutions like this?
Chapter 10 Solutions
Survey of Accounting (Accounting I)
- Please provide the solution to this financial accounting question using proper accounting principles.arrow_forwardBelow is information for Blue Company. Using this information, answer the following questions on the "Calculation" tab in the file. Show your work (how you got your answer) and format appropriately. Blue company has prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 to 1,500 units): Sales $ 40,000 Variable expenses 24,000 Contribution margin 16,000 NOTE: Use the amounts in the original fact pattern to the left as your basis for the questions below. Fixed expenses 12,000 Net operating income $ 4,000 Questions: 1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 3. What is…arrow_forwardI am looking for help with this financial accounting question using proper accounting standards.arrow_forward
- General accountingarrow_forwardPlease explain the correct approach for solving this general accounting question.arrow_forwardRobin Corporation has ordinary income from operations of $30,000, net long-term capital gain of $10,000, and net short-term capital loss of $15,000. What is the taxable income for 2010? a) $25,000. b) $27,000. c) $28,500. d) $30,000. e) None of the above.arrow_forward
- Please explain the solution to this financial accounting problem using the correct financial principles.arrow_forwardI need the correct answer to this financial accounting problem using the standard accounting approach.arrow_forwardI am trying to find the accurate solution to this general accounting problem with the correct explanation.arrow_forward
- Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage LearningPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning




