Unformatted text preview: Product costs attach can also be described as "inventoriable." 6 The cost of air filters used in the paint shop of a manufacturing facility is a period cost because they are replaced monthly. 7 Nonmanufacturing costs for selling and general/administrative purposes are not part of factory overhead. 8 Manufacturers may have three inventory categories: raw materials, finished goods, and cost of goods sold. 9 The cost of carbon fiber incorporated into the frame of a bicycle built by TecTrack Bikes is a product cost. 10 Prime costs include direct labor and manufacturing overhead....
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- Spring '11
- Accounting, Supply chain management terms, Prime costs, conversion costs, TecTrack Bikes, Billboard advertising space