Product Costs Include Which of the Following Costs

question 23

Multiple Choice

Product costs include which of the following costs?

• A)Manufacturing overhead costs and selling and administrative costs.
• B)Variable manufacturing costs and manufacturing overhead costs.
• C)Common costs and special costs.
• D)Period costs and common costs.
• E)Variable costs only.

---

Definitions:

Sales Tax Payable

A liability account used to keep track of sales tax that has been collected from customers but not yet remitted to the government.

Discount Period

The timeframe during which a discount is offered for the early payment of an invoice or a bill, encouraging quicker payment.

Sales Invoice

A document issued by a seller to a buyer that lists products or services sold, including quantities and prices.

Accounts Receivable

Accounts receivable from customers for delivered goods or services awaiting payment.