The Following Are All Product Costs Except

question 100

Multiple Choice

The following are all product costs except:

• A) Direct materials
• B) Sales and administrative expenses
• C) Direct labor
• D) Factory overhead

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Definitions:

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance premiums.

Total Cost

The complete cost of production, including both fixed and variable costs.

Computer Software

Computer software refers to a set of instructions or programs that tell a computer how to perform specific tasks.

Sunk Cost

Expenditure that has been made and cannot be recovered.