How would the cost of rent for a manufacturing plant generally be classified?
A) A product cost but not a prime cost.
B) Neither a product nor prime cost.
C) A prime cost but not a product cost.
D) Both a prime cost and product cost.

Question

Quizplus · Accepted Answer

Rent for a manufacturing plant is typically considered a product cost because it is part of the overhead costs associated with producing goods. However, it is not a prime cost because prime costs include only direct materials and direct labor.

How Would the Cost of Rent for a Manufacturing Plant