All of the following could be included in the cost of a product located in the final production department of a multi-step process except:
A)The costs of materials,labor and overhead identifiable with that department.
B)Logistics (product fulfilment)costs.
C)The costs of service departments that have been allocated to production departments.
D)The costs of prior production departments.

Question

Quizplus · Accepted Answer

Logistics (product fulfilment) costs are not typically included in the cost of a product located in the final production department of a multi-step process. The other choices, including the costs of materials, labor, overhead, service departments, and prior production departments, are all factors that contribute to the total cost of the product.

All of the Following Could Be Included in the Cost