The cost that would not be included as an inventoriable product cost is:
A) Factory manager's salary
B) Depreciation of factory equipment
C) Sales commissions
D) None, i.e. all would be included as inventoriable product costs

Question

Quizplus · Accepted Answer

Sales commissions are considered period costs and are expensed in the period they are incurred, not included in inventoriable product costs. Inventoriable product costs typically include direct materials, direct labor, and manufacturing overhead, which would cover A and B but not C.

The Cost That Would Not Be Included as an Inventoriable