Question

The cost to manufacture a product: select from the below answers -is also referred to as...

The cost to manufacture a product: select from the below answers

-is also referred to as factory cost.

-does not include manufacturing overhead.

-consists of only those costs directly traceable to individual units of the product.

-includes sales personnel salaries.

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Answer #1

Solution:

The cost to manufacture a product "is also referred to as factory cost".

This is because all factory cost become part of product cost. Other options are incorrect as it included manufacturing overhead also and does not include sales salaries.

Hence, first option is correct.

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