The cost of a manufactured product typically consists of three main components: The main cost which is involved is direct labour cost, direct materials cost, and factory overhead cost. Direct labour cost touches on the amount of money paid to employees whose main task involves engaging in the manufacturing of an item. Direct materials cost refers to the cost of the material, which forms a part of the finished product or the cost of the actual parts which make up the product. Factory overhead cost is the cost of other expenses that cannot be directly assigned to a product, but are vital for the production of products such as rent, lighting, and power among others as well as the depreciation of manufacturing plant and equipment. In this way, by considering these three costs of their production, manufacturers can assess the total costs when making a product, used for establishing the price, and future profits, and when designing efficient cost control strategies.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"The cost of a manufactured product generally consists of which of the following costs? a. direct labor cost and factory overhead cost b. direct materials […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\n
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