Which of the following is a product cost?

Question

Quizplus · Accepted Answer

Insurance on factory machinery is a cost directly related to the production of a product and is therefore considered a product cost.

Answer: B 
 Insurance on delivery trucks is also a cost directly related to the production of a product and is therefore considered a product cost.

Answer: C 
 Lease expense on office computer is not directly related to the production of a product and is considered an indirect cost, also known as overhead.

Answer: D 
 Advertising costs are not directly related to the production of a product and are considered an indirect cost, also known as overhead.

Which of the Following Is a Product Cost