Which of the following would be considered a product cost for a manufacturing business?
A)depreciation on delivery vehicles
B)depreciation on administrative building furniture and fixtures
C)depreciation on manufacturing equipment
D)depreciation on the accounting department's computer equipment

Question

Quizplus · Accepted Answer

Depreciation on manufacturing equipment is a product cost because it is directly related to the production process. Depreciation on delivery vehicles, administrative building furniture and fixtures, and accounting department's computer equipment are all considered period costs as they are not directly related to the production process.

Which of the Following Would Be Considered a Product Cost