The following are all product costs except:
A) Direct materials
B) Sales and administrative expenses
C) Direct labor
D) Factory overhead

Question

Quizplus · Accepted Answer

Sales and administrative expenses are not considered product costs. They are considered period costs and are expensed in the period they are incurred, rather than being included in the cost of the product. Direct materials, direct labor, and factory overhead are all product costs because they are directly related to the production of the product.

The Following Are All Product Costs Except