An example of a product cost is:
A) advertising expense for the product.
B) a portion of the president's travel expenses.
C) interest expense on a loan to finance inventory.
D)production line maintenance costs.

Question

Quizplus · Accepted Answer

Production line maintenance costs are directly related to the production of the product and are therefore considered product costs. Advertising expense, the president's travel expenses, and interest on a loan to finance inventory are not directly related to the production of the product and would be considered period costs.

An Example of a Product Cost Is