Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device.Property taxes on the building that will be purchased to house the manufacturing facility are:
A) a product cost
B) a variable cost
C) an opportunity cost
D) a period cost

Question

Quizplus · Accepted Answer

Property taxes on the building are considered a product cost because they are part of the costs associated with manufacturing the product, as they are necessary for the production facility.

Mark Is an Engineer Who Has Designed a Telecommunications Device