Costs identified with goods produced or purchased for resale are called
A) product costs.
B) period costs.
C) prime costs.
D) conversion costs.

Question

Quizplus · Accepted Answer

Product costs include all costs involved in acquiring or making a product, including direct materials, direct labor, and overhead costs. These costs are incurred during the production process and are assigned to units of the product. Therefore, product costs are the costs identified with goods produced or purchased for resale.

Costs Identified with Goods Produced or Purchased for Resale Are