Which of the Following Items Is Not a Product Cost

question 28

Multiple Choice

Which of the following items is not a product cost?

• A)Freight cost on goods delivered FOB destination to customers
• B)Cost of merchandise purchased for resale
• C)Transportation cost on merchandise purchased from suppliers
• D)All of these answer choices are product costs

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Definitions:

Innovate

To innovate means to introduce new methods, ideas, or products, aiming at improvements or solving problems.

Stagnate

To stop developing, progressing, or advancing; to become static or stale.

Creativity

Generates unique and novel responses to problems.

Process

A series of actions or steps taken in order to achieve a particular end.