Salaries and wages incurred in the factory would be product costs

Question

Quizplus · Accepted Answer

Salaries and wages incurred in the factory would be considered a product cost, which refers to the costs associated with producing and manufacturing a product. Period costs, on the other hand, are expenses that are not directly tied to production and are usually treated as operating expenses on the income statement. Examples of period costs include salaries and wages of administrative staff, advertising expenses, and rent for office space.

Salaries and Wages Incurred in the Factory Would Be Product