Which of the Following Items Is Not a Product Cost

question 10

Multiple Choice

Which of the following items is not a product cost?

• A)Transportation cost on goods delivered to customers.
• B)Cost of merchandise purchased for resale.
• C)Transportation cost on merchandise purchased from suppliers.
• D)All of these answer choices are product costs.

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Definitions:

Principal Debtor

The main individual or entity responsible for repaying a debt or obligation.

Creditor

An individual, organization, or entity that lends money or extends credit to another party, expecting repayment.

Verbal Agreement

An agreement made through spoken words and not formally recorded in writing, yet is legally binding.

Specific Performance

A legal remedy where a court requires a party to fulfill their obligations under a contract, rather than providing a financial compensation.