Question

Choose a well-known publicly traded company that none of your other classmates have chosen, and explain what costs would be included in each of the three manufacturing cost categories. Include a link to this financial statement in your post. ( Adidas would be a good choice).

A minimum of 150 words please.

Answer 1

Three Manufacturing Cost Categories are as follows-
1. Direct Materia - the cost of the materials which become part of the finished product
2. Direct Labour - the cost of the wages of the individuals who are physically involved in converting raw materials into a finished product
3. Factory Overhead - all other costs incurred in the manufacturing activity which cannot be directly traced to physical units .
I relation to Addidas following are the costs-
Direct Material	Direct Labour	Factory Overhead
recycled polyester	Wages	Cleaning Supplies
recycled rubber	Insurance paid to employee	Security Guard
organic cotton	Benefit paid to employee	Supervisors
Polylactic Acid	Assembly Line workers	Quality Assurance workers
TENCEL®	Wages of carpenter	Factory Utilities
Synthetic fibers		Lease Expenses
carbon rubber		Factory Insurance
plastic slabs		Factory Rent
leather
Cloth
nails
plastic eyelets
Please note this is not an exhaustive list.
Note-
Best effort have been made to answer the question correctly, in case of any discrepencies kindly comment and i will try to resolve it as soon as possible.
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