Product costs include which of the following costs?
A)Manufacturing overhead costs and selling and administrative costs.
B)Variable manufacturing costs and manufacturing overhead costs.
C)Common costs and special costs.
D)Period costs and common costs.
E)Variable costs only.

Question

Quizplus · Accepted Answer

Product costs include both variable manufacturing costs (such as direct materials and direct labor) and manufacturing overhead costs (such as rent and utilities for the factory). Common costs and period costs are not included in product costs. Selling and administrative costs are not part of product costs, but rather are classified as period costs.

Product Costs Include Which of the Following Costs