Which of the following is a product cost?
A) Circuitry used in producing hard drives.
B) Monthly advertising in the newspaper.
C) The salary of the vice president-finance.
D) Sales commissions.
E) Research costs for new router development.

Question

Quizplus · Accepted Answer

Circuitry used in producing hard drives is a direct material cost, which is a component of product costs. Product costs are all costs involved in acquiring or making a product, including direct materials, direct labor, and manufacturing overhead.

Which of the Following Is a Product Cost