Which of the following is a product cost?
A)Glass in an automobile.
B)Advertising.
C)The salary of the vice president-finance.
D)Rent on a factory.
E)Both "A" and "D."

Question

Quizplus · Accepted Answer

Both "A" and "D" are product costs as they are directly related to the production of the automobile. Glass is a direct material cost, while rent on a factory is a direct overhead cost. Advertising and the salary of the vice president-finance are not directly related to the production of a product and are considered period costs.

Which of the Following Is a Product Cost