Which of the following is a product cost?
A)advertising expenditures
B)insurance on the office buildings
C)depreciation of the salesmen's cars
D)depreciation of the production facilities

Question

Quizplus · Accepted Answer

Depreciation of the production facilities is a product cost because it is directly related to the manufacturing process and the cost of producing goods. The other options, advertising expenditures, insurance on office buildings, and depreciation of the salesmen's cars are considered period costs because they are not directly related to producing goods.

Which of the Following Is a Product Cost