The cost of rent for a manufacturing plant is generally considered to be a:
$$\begin{array} { | l | l | l | }
\hline & \text { Prime cost } & \text { Product cost } \
\hline \text { a. } & \text { No } & \text { Yes } \
\hline \text { b. } & \text { No } & \text { No } \
\hline \text { c. } & \text { Yes } & \text { No } \
\hline \text { d. } & \text { Yes } & \text { Yes } \
\hline
\end{array}$$

Question

The cost of rent for a manufacturing plant is generally considered to be a:
$$\begin{array} { | l | l | l | } 
\hline & \text { Prime cost } & \text { Product cost } \
\hline \text { a. } & \text { No } & \text { Yes } \
\hline \text { b. } & \text { No } & \text { No } \
\hline \text { c. } & \text { Yes } & \text { No } \
\hline \text { d. } & \text { Yes } & \text { Yes } \
\hline
\end{array}$$

Quizplus · Accepted Answer

Rent for a manufacturing plant is considered a product cost because it is associated with the production process but is not a prime cost since it is not a direct cost like direct labor or materials.

The Cost of Rent for a Manufacturing Plant Is Generally