How would the cost of rent for a manufacturing plant generally be classified?
A) A product cost but not a prime cost.
B) Neither a product nor prime Cost.
C) A prime cost but not a product cost.
D) Both a prime cost and product cost.

Question

Quizplus · Accepted Answer

Rent for a manufacturing plant is considered a product cost because it is part of the manufacturing overhead, but it is not a prime cost, which includes only direct materials and direct labor.

How Would the Cost of Rent for a Manufacturing Plant