Which of the following would be considered a product cost for a manufacturing company?
A) salary of the sales manager
B) salary of the CEO
C) salaries of the accounting staff
D) salary of the production manager

Question

Quizplus · Accepted Answer

A product cost is any cost involved in the production of a product. The salary of the production manager directly relates to the production process and would be considered a product cost. The other choices (A, B, and C) are all considered period costs, which are expenses that are not directly related to the production process.

Which of the Following Would Be Considered a Product Cost