Question

Manufacturing costs are calculated by adding______________________

A.
Administrative overheads and marketing overheads.

B.
Adding Direct labour costs, direct material costs and manufacturing overheads.



C.
Multiplying costs per hour and with hours worked.



D.
Adding Direct costs of materials, direct labour costs and indirect costs.

Answer 1

The correct answer is:

**B. Adding Direct labour costs, direct material costs and manufacturing overheads.**

This option correctly reflects how manufacturing costs are typically calculated in accounting, as it includes the direct costs associated with producing goods.