Inventoriable product costs for a manufactured product include
A) marketing and research and development costs.
B) the costs of direct materials, direct labour and manufacturing overhead.
C) the costs of direct materials and direct labour only.
D) sales commissions on selling the product.

Question

Quizplus · Accepted Answer

Inventoriable product costs for a manufactured product include the costs of direct materials, direct labour and manufacturing overhead, as these costs are directly related to the production of the product. Marketing and research and development costs are typically expensed immediately and are not inventoried. Sales commissions on selling the product are not part of the production process and are therefore not inventoried.

Inventoriable Product Costs for a Manufactured Product Include