Which of the Following Would Be Considered a Product Cost

question 178

Multiple Choice

Which of the following would be considered a product cost for a manufacturing company?

• A) depreciation on delivery vehicles
• B) depreciation on administrative building furniture and fixtures
• C) depreciation on manufacturing equipment
• D) depreciation on the accounting department's computer equipment

---

Definitions:

Customary Pricing

Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.

Prestige Pricing

A pricing strategy where goods are priced higher to evoke a sense of luxury or quality, making them desirable due to their cost.

Cost-Oriented Pricing

A pricing strategy where the price of a product or service is determined based on the cost of production plus a markup.

Below-Market Pricing

A pricing strategy where goods or services are offered at prices lower than the typical market value.