Which of the Following Is Included in Product Cost for Pricing

question 31

Multiple Choice

Which of the following is included in product cost for pricing and product-mix decisions?

• A) design costs
• B) sunk costs
• C) opportunity costs
• D) cost of capital

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Definitions:

Cost of Goods Sold

This accounts for the direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Merchandise Inventory Account

An account on a company's balance sheet that represents the products that a retail or wholesale company plans to sell.

Units of Inventory Purchased

The total quantity of items bought for resale or use in production during a specific period.