Which of the following costs at a manufacturing company would be treated as a product cost under variable costing?
A) direct material cost
B) property taxes on the factory building
C) sales manager's salary
D) sales commissions

Question

Quizplus · Accepted Answer

Direct material cost is a cost directly related to the production of a product and hence would be treated as a product cost under variable costing methodology. Property taxes on the factory building, sales manager's salary, and sales commissions are all considered period costs and would not be treated as product costs under variable costing.

Which of the Following Costs at a Manufacturing Company Would