Which of the following is NOT a product cost?
A) Indirect labour
B) Raw materials used
C) Insurance on the plant
D) Advertising expense

Question

Quizplus · Accepted Answer

Product costs are costs that are directly related to the production of a product or service. Indirect labor and raw materials used are examples of product costs. Insurance on the plant can also be considered a product cost as it is related to protecting the assets used in production. However, advertising expense is not directly related to the production of a product or service and is therefore not a product cost.

Which of the Following Is NOT a Product Cost