Which statement best describes product costs?
A) Product costs are manufacturing costs.
B) Product costs do not include direct materials.
C) Product costs do not include manufacturing overhead.
D) Product costs are direct materials and direct labour costs only.

Question

Quizplus · Accepted Answer

Product costs are the costs associated with the production or manufacturing of a product. It includes all the costs incurred in the manufacturing process, such as direct materials, direct labor, and manufacturing overhead. Therefore, option A is the correct statement.

Which Statement Best Describes Product Costs