Which of the following best describes the concept of product costs?
A) They are costs that are "attached" to inventory.
B) They are costs that are usually expenses.
C) They usually don't include freight charges.
D) They usually don't include conversion costs.

Question

Quizplus · Accepted Answer

Product costs are costs that are "attached" to inventory and are necessary to produce or purchase a product. Examples include direct materials, direct labor, and manufacturing overhead.

Which of the Following Best Describes the Concept of Product