Which of the following would not be classified as a product cost?
A) Direct materials.
B) Direct labor.
C) Indirect materials.
D) Insurance on a manufacturing plant.
E) Sales bonuses for meeting quota sales.

Question

Quizplus · Accepted Answer

Product costs include all costs involved in acquiring or making a product, which typically encompass direct materials, direct labor, and manufacturing overhead (including indirect materials and factory-related expenses like insurance on a manufacturing plant). Sales bonuses for meeting quota sales are considered period costs, not product costs, because they are not directly tied to the production process.

Which of the Following Would Not Be Classified as a Product