Under Australia accounting standards,which of the following are inventoriable product costs?
A) Depreciation of office equipment.
B) Salesmen's salaries.
C) Manufacturing costs.
D) Administration costs.

Question

Quizplus · Accepted Answer

Inventoriable product costs are costs that are directly related to the production of goods. Manufacturing costs, which include direct materials, direct labor, and overhead costs, are the only option provided that are directly related to the production of goods and therefore are inventoriable product costs. Depreciation on office equipment and salesmen's salaries are not inventoriable product costs, and administration costs are generally considered period costs rather than product costs.

Under Australia Accounting Standards,which of the Following Are Inventoriable Product