Product Costs Include Each of the Following Except

question 67

Multiple Choice

Product costs include each of the following except

• A) overhead.
• B) officer's salaries.
• C) material.
• D) labor.

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Definitions:

Assembly Department

A part of a production facility where pieces are combined to form complete products.

Direct Labor-Hours

Direct labor-hours measure the amount of time workers or employees spend directly working on producing goods or providing services.

Departmental Predetermined Rate

A rate used to allocate overhead costs to products or services, calculated in advance and based on the estimated costs and activity levels of a specific department.

Assembly Department

A segment in manufacturing where components are assembled into finished products.