All of the Following Are Product Costs Except

question 54

Multiple Choice

All of the following are product costs except

• A) direct materials
• B) sales and administrative expenses
• C) direct labor
• D) factory overhead

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Definitions:

Functional Departmentation

Employees with closely related skills and responsibilities are assigned to the same department.

Product Departmentation

Departments are formed on the basis of a particular product, product line, or service.

Coordination Problems

Difficulties that arise in the process of organizing people or groups to allow for harmonious action or function.

High Differentiation

describes an organization with a complex structure where different units or departments specialize in particular tasks or functions, often resulting in a variety of perspectives and approaches.