Which of the Following Is Not a Product Cost Component

question 52

Multiple Choice

Which of the following is not a product cost component?

• A)rent on a factory building
• B)indirect production labor wages
• C)janitorial supplies used in a factory
• D)commission on the sale of a product

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Definitions:

Fixed Cost

Costs that do not change with the level of production or sales volume, remaining constant regardless of business activities.

Planning Budget

An initial budget created using the assumptions of a particular level of activity to guide a company's financial decisions.

Net Operating Income

A financial metric that measures a company's profitability from its core business operations, excluding the effects of financing and taxes.

Selling

The process of promoting and transferring goods or services to customers in exchange for money.