The product cost concept includes all manufacturing costs plus selling and administrative expenses in the cost amount to which the markup is added to determine product price.

Question

Quizplus · Accepted Answer

The product cost concept includes all manufacturing costs (direct materials, direct labor, and manufacturing overhead) but does not include selling and administrative expenses; these are considered period costs and are not included in the calculation of the product cost.

The Product Cost Concept Includes All Manufacturing Costs Plus Selling