The Following Are All Examples of Product Costs

question 100

Multiple Choice

The following are all examples of product costs:

• A) Direct material, direct labor and indirect labor.
• B) Direct labor, VP of sales salary, and insurance on the factory.
• C) Depreciation on the factory equipment, depreciation on the office building, and depreciation on the factory building.
• D) Factory insurance, interest expense, and property taxes on the factory.
• E) Office supplies, sales commissions, and maintenance costs on office copier.

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Definitions:

Epinephrine

An injectable medication used to treat anaphylaxis by causing vasoconstriction to increase blood pressure. Also, a hormone secreted from the adrenal glands. It increases heart rate, breathing rate, and blood pressure.

Nitroglycerin

A medication used to treat and prevent chest pain (angina) by dilating blood vessels and reducing heart workload.

Gauge

A measurement of the thickness or size of various objects, notably the diameter of a wire, body thickness, or the bore of a firearm.

Needles

Thin, cylindrical objects made of metal or plastic, designed for various purposes including sewing, medical injections, and as components of medical devices.