Which of the following costs is NOT a product cost?
A)rent on an office building
B)indirect labor
C)repairs on manufacturing equipment
D)steel used in inventory items produced

Question

Quizplus · Accepted Answer

Rent on an office building is not a product cost because it is not directly associated with the production of goods or services. Product costs include direct materials, direct labor, and manufacturing overhead costs (such as indirect labor and repairs on manufacturing equipment). The cost of steel used in inventory items produced is also a product cost because it is directly tied to the production process.

Which of the Following Costs Is NOT a Product Cost