Question

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as a.direct labor cost b.factory overhead cost c.direct materials cost d.miscellaneous costs

Answer 1

Answer:

The correct answer is (A)

Explanation:

The cost which is directly associated with converting materials into a finished product is known as direct labour cost. The cost of wages paid to employees is the direct cost involved in the manufacturing process. In other words, a cost that is directly involved in the production of goods and services is the direct cost, for example, direct cost, direct commission, direct material cost.