Which of the following is not an example of a product cost?
A)Salary of manufacturing supervisor
B)Power for equipment
C)Depreciation on company-owned sales outlets
D)Depreciation on company-owned manufacturing plant

Question

Quizplus · Accepted Answer

Depreciation on company-owned sales outlets is an example of a period cost, not a product cost. Product costs are costs that are directly tied to the production of a product, while period costs are expenses that are not related to the production process, such as sales and marketing expenses, administrative overhead, and depreciation on non-production related assets. Choices A, B, and D are all examples of product costs, as they are expenses directly related to the production process.

Which of the Following Is Not an Example of a Product