Which of the following is a product cost for a construction company?
A) Cost of transporting raw materials to the job site
B) Wages paid to the company's payroll clerk
C) Rent of the company's main office
D) All of these.

Question

Quizplus · Accepted Answer

Cost of transporting raw materials to the job site is a direct cost that can be traced to the specific construction project, making it a product cost. The other options (B and C) are indirect costs that cannot be directly tied to a specific project and are therefore considered overhead costs.

Which of the Following Is a Product Cost for a Construction