Which of the following would be considered a product cost for a manufacturing company?
A) depreciation on delivery vehicles
B) depreciation on administrative building furniture and fixtures
C) depreciation on manufacturing equipment
D) depreciation on the accounting department's computer equipment

Question

Quizplus · Accepted Answer

Depreciation on manufacturing equipment is considered a product cost because it is directly related to the production of goods. The other options are indirect costs and are not directly related to production.

Which of the Following Would Be Considered a Product Cost