Which of the Following Is Normally Considered to Be a Product

question 64

Multiple Choice

Which of the following is normally considered to be a product cost?

• A)Insurance on a factory building.
• B)Selling expenses.
• C)President's salary.
• D)Miscellaneous office expense.

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Definitions:

First-In, First-Out

An inventory valuation method where the goods first added to inventory are the first ones to be sold.

Finishing Department

The final stage in a manufacturing process where products undergo last touches, quality checks, and preparation for sale or distribution.

Conversion Equivalent Units

A concept in cost accounting used to measure the work done on inventory, converting partially finished goods into a number of fully finished units.

First-In, First-Out

An inventory accounting method where the oldest inventory items are recorded as sold first.