Which of the Following Is Not a Product Cost

question 156

Multiple Choice

Which of the following is not a product cost?

• A)Indirect materials costs
• B)Packaging costs
• C)Direct labor costs
• D)Overhead costs

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Definitions:

Tax-Deductible Expense

An expense that can be subtracted from taxable income, effectively reducing the overall tax liability.

Debt Financing

Raising capital through the borrowing of funds to be repaid with interest over time.

FIFO Method

First In, First Out, an inventory valuation method where the oldest inventory is sold first.

Inventory Value

Inventory value is the total cost or market value of all the goods held by a company that are ready or will be ready for sale.