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There are three main categories of product costs: (1) direct materials, which are materials that become part of the product; (2) direct labor, which includes anyone who touches the product; and (3) manufacturing overhead, which includes indirect materials, utilities, and costs of the facilities and management that are required to operate the factory but cannot be traced to a specific product. When the product is sold, the costs are matched to the sales revenue and reported on the income statement as cost of

Author

MamIbrahim Jobe

Language

EN