For a manufacturing firm, which of the following is a product cost?
A)Salary of administrative staff
B)Wages paid to factory janitor
C)Commissions paid to sales staff
D)Depreciation on corporate building

Question

Quizplus · Accepted Answer

Wages paid to factory janitor are considered a product cost because it directly relates to the manufacturing process by keeping the factory clean and safe for production. The other options listed are considered period costs because they are not directly related to the production of goods.

For a Manufacturing Firm, Which of the Following Is a Product