Which of the following is not a product cost?
A)Depreciation on a warehouse where raw materials are stored
B)An employee working directly on assembling a car
C)The leather seats of a motorcycle
D)The real estate tax of the showroom

Question

Quizplus · Accepted Answer

Product costs are those costs that are incurred to acquire or manufacture a product. These include direct materials, direct labor, and manufacturing overhead. The real estate tax of the showroom is considered a period cost, not a product cost, because it is associated with non-manufacturing functions and is expensed in the period incurred.

Which of the Following Is Not a Product Cost