Which of the Following Is a Product Cost for a Manufacturing

question 70

Multiple Choice

Which of the following is a product cost for a manufacturing company?

• A) salary of administrative staff
• B) wages paid to factory janitor
• C) commissions paid to sales staff
• D) depreciation on corporate building

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Definitions:

Accumulated Depreciation

The cumulative sum of depreciation costs recorded for a fixed asset since its initial use.

Patents

Exclusive rights to produce and sell goods with one or more unique features.

Net Income

The total profit or loss a company generates from its operations over a specific period after all expenses have been subtracted from revenues.

Operating Activities

The element of a company's cash flow statement that represents the cash flow from regular business operations.