Answer (B) is correct . Manufacturing costs consist of direct materials, direct labor, and manufacturing overhead. The cream, plant property taxes, and tires are all integral to the production of the final product and so are properly classified as manufacturing costs. Sales commissions, however, are not incurred until after the product has been manufactured. They are properly classified as a selling expense.
Answer (A) is incorrect because Cream is a direct material for an ice cream maker.
Answer (C) is incorrect because The taxes on a manufacturing facility are a cost of producing the product.
Answer (D) is incorrect because Tires are part of the final product of an automobile manufacturer, resulting in them being properly classified as direct materials and thus manufacturing costs.
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