Which of the Following Is Not a Product Cost

question 81

Multiple Choice

Which of the following is not a product cost?

• A) direct materials.
• B) sales and administrative expenses.
• C) direct labor.
• D) factory overhead.

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Definitions:

Uncollectible Percentage

An estimated fraction of accounts receivable that a company does not expect to collect.

Aging

A method used in accounting to categorize accounts receivables based on the length of time an invoice has been outstanding.

Allowance Account

An account used in accounting to reduce the value of accounts receivable to a more realistic amount by accounting for potential bad debts.

Uncollectibles

Debts owed to a company that are considered unlikely to be recovered or paid.