Which of the following would NOT be treated as a product cost for external financial reporting purposes?
A) Depreciation on a factory building.
B) Salaries of factory workers.
C) Indirect labour in the factory.
D) Advertising expenses.

Question

Quizplus · Accepted Answer

Advertising expenses are considered period costs and are expensed in the period that they are incurred, rather than being included as a product cost for external financial reporting purposes. A, B, and C are all examples of product costs that would be included in the cost of goods sold for external financial reporting purposes.

Which of the Following Would NOT Be Treated as a Product