Which of the following is most likely a product cost?
A)Advertising expense
B)Sales commissions for the current month
C)Cardboard packaging for the product
D)Janitorial expense for the administrative offices

Question

Quizplus · Accepted Answer

Cardboard packaging for the product is a direct cost associated with manufacturing the product and is therefore a product cost. The other options (advertising expense, sales commissions, janitorial expense) are not directly related to the manufacturing process and are therefore not product costs.

Which of the Following Is Most Likely a Product Cost