Which of the following describes full product costs for a product?
A)Full product costs are narrower in scope than inventoriable product costs.
B)Full product costs consist of direct materials,direct labor and manufacturing overhead.
C)Full product costs include all costs of the value chain.
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

Full product costs include all costs of the value chain, which means it goes beyond just the manufacturing stage and includes all costs incurred from research and development, design, marketing, distribution, and customer service. Direct materials, direct labor, and overhead costs are part of the inventoriable costs, which includes only costs related to production. Full product costs are broader in scope than just the costs incurred to manufacture the product. Therefore, option A and B are incorrect.

Which of the Following Describes Full Product Costs for a Product