The following are all examples of product costs:

Question

Quizplus · Accepted Answer

Direct material, Direct Labor and Indirect Labor are all examples of product costs as they are directly related to the production process and the cost of producing a product.

Answer: B
 Direct Labor can be considered a product cost as it is directly related to producing a product. However, VP of Sales salary and Insurance on the factory are not related to the production process and are considered period costs.

Answer: C
 Depreciation on the factory equipment, depreciation on the office building, and depreciation on the factory building are not direct costs of producing a product and should be categorized as period costs.

Answer: D
 Factory Insurance, Interest expense, and Property taxes on the factory are not direct costs of producing a product and should be categorized as period costs.

Answer: E
 Office supplies, Sales commissions, and maintenance costs on office copier are not direct costs of producing a product and should be categorized as period costs.

The Following Are All Examples of Product Costs