In a manufacturing company,product costs used for external reporting include ________.
A) direct material costs plus direct labor cost only
B) indirect production costs only
C) direct material costs plus direct labor cost plus indirect production costs
D) direct material costs plus nonproduction costs

Question

Quizplus · Accepted Answer

The product costs used for external reporting include all costs that are directly related to the production of a product. These include direct material costs, direct labor costs, and indirect production costs (such as rent, utilities, and depreciation). Nonproduction costs, such as selling and administrative expenses, are not included in product costs for external reporting.

In a Manufacturing Company,product Costs Used for External Reporting Include