Only direct costs can be classified as product costs; indirect costs are classified as period costs.

Name: Only direct costs can be classified as product costs; indirect costs are classified as period costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Product costs can include both direct and indirect costs, such as direct materials, direct labor, and manufacturing overhead, which includes indirect costs related to production. Period costs are not tied to production and include non-manufacturing costs.

Only Direct Costs Can Be Classified as Product Costs; Indirect