Which of the following is never included in product cost?
A) overhead
B) direct materials
C) variable selling expense
D) fixed factory overhead
E) direct labor

Question

Quizplus · Accepted Answer

Variable selling expenses are not included in product cost since they are incurred after the product is manufactured and are directly related to the selling process. Product cost only comprises of direct materials, direct labor, and manufacturing overhead, which includes fixed factory overhead.

Which of the Following Is Never Included in Product Cost