Transportation costs paid to ship raw materials to a company warehouse are considered product costs.

Name: Transportation costs paid to ship raw materials to a company warehouse are considered product costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Transportation costs associated with acquiring raw materials and bringing them to a company warehouse are considered part of the cost of producing a product. As a result, they are classified as product costs rather than period costs.

Transportation Costs Paid to Ship Raw Materials to a Company