Which of the following is a product cost?
A) salary of a sales manager
B) advertising for a particular product
C) drill bits for a drill press used in the plant assembly area
D) salary of the company receptionist

Question

Quizplus · Accepted Answer

Product cost refers to the cost incurred in the production or manufacturing of a specific product. The drill bits used in the plant assembly area are directly related to the production process and, therefore, would be considered a product cost. A, B, and D are examples of period costs, which are expenses that are not directly tied to the production process but are necessary for running the business.

Which of the Following Is a Product Cost