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 labor costs and manufacturing overhead are both types of product costs. Product costs are costs that are directly related to creating a product, such as materials, labor, and overhead expenses. Period costs, on the other hand, are not directly related to creating a product and include expenses like administrative costs and selling expenses. Inventoriable costs are also a type of product cost as they refer to the direct costs associated with the production of goods that are held in inventory. Plant assets can be a product cost if they are directly used in the production of goods, but they could also be classified as period costs if they are not specifically related to production.

Which of the Following Are Considered Product Costs