Question

Which of the following costs is an example of product costs? A. selling commissionsB. nonfactory office salariesC. direct materialsD. advertising expense

Answer 1

Answer:

C

Explanation:

Product cost is the total cost expended in creating a product. They include direct labour, direct materials, production supplies, and factory overhead.

For example to produce a pencil, some of the product cost would include :

• the wages of labour employed
• the raw materials used to make the pencil