Which of the Following Would Not Be Considered a Product

question 302

Multiple Choice

Which of the following would not be considered a product cost of a manufacturer?

• A)Direct labor
• B)Direct materials
• C)Manufacturing overhead
• D)Freight out

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Definitions:

Residual Value

The estimated value of an asset at the end of its useful life or lease term.

Depreciation Expense

the systematic allocation of the cost of a tangible asset over its useful life.

Goodwill

An intangible asset that arises when a business is acquired for more than its fair value, attributed to factors like reputation, brand, and customer relationships.

Fair Value

The estimated market price of an asset or liability, reflecting the amount for which it could be exchanged or settled between knowledgeable parties in an arm's length transaction.