Which of the following costs incurred by a furniture manufacturer would be a product cost?
A) office salaries
B) lumber
C) commissions paid to sales staff
D) controller's salary

Question

Quizplus · Accepted Answer

Lumber is a direct material cost and is used in the manufacturing process. Therefore, it is a product cost which is included in the cost of making each piece of furniture. The other costs listed are not directly related to the manufacturing process and are considered period costs.

Which of the Following Costs Incurred by a Furniture Manufacturer