Which of the Following Is Not a Product Cost

question 37

Multiple Choice

Which of the following is not a product cost?

• A)Direct materials costs
• B)Selling costs
• C)Direct labor costs
• D)Factory overhead costs

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Definitions:

Obligation

A duty or commitment one party has to perform or refrain from performing specified actions as per a contract or legal requirement.

Novation

The act of replacing an existing obligation with a new one, transferring rights and duties from the original party to a new party.

Substitute

A replacement or alternative for someone or something.

Contract

A binding contract between multiple parties that is supported by legal enforcement.