Which of the Following Is Correct

question 9

Multiple Choice

Which of the following is correct?

• A)Selling costs are product costs.
• B)Manufacturing overhead costs are product costs.
• C)Interest costs for routine inventories are product costs.
• D)All of these.

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Definitions:

Balance Sheet

The financial statement of what is owned (assets), what is owed (liabilities), and the difference between the two (net worth) on a specific date.

Gross Profit

Revenue from sales or services minus the cost of goods sold, representing the preliminary profit figure before deducting operating expenses.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Net Sales

Total sales for the time period minus sales returned and adjustments made during the same time.