Full product cost includes
A) all direct labor and direct material costs and all production and nonproduction costs.
B) only nonproduction costs.
C) only the costs of direct material.
D) only the costs of direct labor.

Question

Quizplus · Accepted Answer

Full product cost includes all direct labor and direct material costs, as well as all production and non-production costs. This includes indirect labor, factory overhead, and any non-manufacturing costs, such as marketing and administrative expenses. Therefore, option A is the correct answer.

Full Product Cost Includes