Product costs used for external reporting generally include:
A)design costs plus manufacturing costs.
B)manufacturing costs only.
C)all costs incurred along the value chain.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Product costs used for external reporting generally include direct materials, direct labor, and manufacturing overhead costs. These are the costs incurred in the manufacturing process, and are therefore considered manufacturing costs.

Answer: D 
 Although design costs are not typically included in external reporting, all costs incurred along the value chain can be included in product costs for external reporting purposes. This can include costs such as marketing, distribution, and customer service costs, in addition to manufacturing costs.

Product Costs Used for External Reporting Generally Include