Which of the following are considered product costs?
A)period costs and administrative expenses
B)selling and administrative expenses
C)inventoriable costs and plant assets
D)direct labour costs and manufacturing overhead

Question

Quizplus · Accepted Answer

Direct labour costs and manufacturing overhead are considered product costs because they are directly related to the production of a specific product. Period costs (A) are expenses that are not related to the production of a specific product but are incurred over a period of time. Selling and administrative expenses (B) are also not directly related to the production of a specific product. Inventoriable costs and plant assets (C) do relate to the production of a product, but are a broader category that includes both product and period costs.

Which of the Following Are Considered Product Costs