The Cost Flow Diagram for product costing includes all of the following costs except:
A)Selling expenses
B)Direct materials
C)Direct labor
D)Fixed manufacturing overhead
E)Variable manufacturing overhead

Question

Quizplus · Accepted Answer

The cost flow diagram for product costing includes only those costs that are directly related to the production of a product. Selling expenses are not part of the product cost, as they are incurred after the product is manufactured and are associated with the marketing and distribution of the product. The other options listed, B) direct materials, C) direct labor, D) fixed manufacturing overhead, and E) variable manufacturing overhead, are all part of the product cost and are included in the cost flow diagram.

The Cost Flow Diagram for Product Costing Includes All of the Following