Unformatted text preview: 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....
View Full Document
- Spring '11
- Accounting, Supply chain management terms, Prime costs, conversion costs, TecTrack Bikes