Which of the following is a product cost as it relates to inventory?
A) Selling costs.
B) Interest costs.
C) Raw materials.
D) Abnormal spoilage.

Question

Quizplus · Accepted Answer

Raw materials are a direct cost related to producing a product and are included in the inventory cost. Selling costs and interest costs are not related to inventory and are expensed as period costs. Abnormal spoilage is not included in the inventory cost because it is considered a loss or waste.

Which of the Following Is a Product Cost as It