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 commissions.

Question

Quizplus · Accepted Answer

Sales commissions would be classified as a period cost or selling expense as it is not directly involved in the production process. Product costs, on the other hand, are costs incurred in the manufacturing process to produce a product and include direct materials, direct labor, and indirect materials, among others. Insurance on a manufacturing plant can be classified as a product cost if it is for the specific manufacturing plant used to produce the product.

Which of the Following Would Not Be Classified as a Product