**Multiple Choice Question****Question:**Which of the following is *not* a product cost?**Options:**- Direct materials- Direct labor- Sales commissions- Variable manufacturing overhead**Instructions:**Select the option that does not classify as a product cost.**Explanation:**In cost accounting, product costs are those costs that are incurred to create a product. They typically include direct materials, direct labor, and manufacturing overhead. Product costs are typically recorded as inventory on a company's balance sheet when they are incurred and then expensed as cost of goods sold when the product is sold.Sales commissions, on the other hand, are considered a period cost since they are not directly tied to the production process but rather incurred as a result of selling the product.

Product cost is that which is not included in the direct manufacturing of the goods. Direct…

Answered: Which of the following is not a product…

Which of the following is not a product cost? Multiple Cholce O Direct materlals ) Direct labor Sales commissions Varlable manufacturing overhead

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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