Product costs used for external reporting under GAAP include
A)manufacturing costs only.
B)design costs plus manufacturing costs.
C)all costs incurred along the value chain.
D)prime costs but not conversion costs.
E)only conversion costs.

Question

Quizplus · Accepted Answer

Under GAAP, product costs for external reporting include only manufacturing costs, which consist of direct materials, direct labor, and manufacturing overhead.

Product Costs Used for External Reporting Under GAAP Include