Which of the following would be considered a product cost for a manufacturing business?
A) research and development
B) property taxes on the factory
C) advertising
D) delivery costs

Question

Quizplus · Accepted Answer

Property taxes on the factory are considered a product cost because they are directly associated with the manufacturing facility where the products are made. Product costs include all costs necessary to manufacture a product, including direct materials, direct labor, and manufacturing overhead, which encompasses property taxes on the factory.

Which of the Following Would Be Considered a Product Cost