The machine support and other manufacturing costs, except raw materials and direct labor, incurred as part of a product's costs is known as .
Question
The machine support and other manufacturing costs, except raw materials and direct labor, incurred as part of a product's costs is known as .
Solution
Final Answer
The costs described in the question are known as manufacturing overhead or indirect costs.
Manufacturing overhead refers to all the costs associated with manufacturing a product that are not directly tied to the production of raw materials or labor. This includes expenses such as the depreciation of machinery, rent for manufacturing facilities, utilities, and salaries of supervisory staff. These costs are essential in determining the total cost of production and are allocated to individual products or services, allowing manufacturers to assess the overall profitability of their operations. Understanding manufacturing overhead is crucial for effective budgeting, pricing strategy, and overall financial management in the production process.
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