Which of the Following Is Not a Product Cost Under

question 15

Multiple Choice

Which of the following is not a product cost under full-absorption costing?

• A) Direct materials used in the current period.
• B) Rent for the warehouse used to store direct materials.
• C) Salaries paid to the top management in the company.
• D) Vacation pay accrued for the production workers.

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Definitions:

Tractor Protection Valve

A safety valve in commercial vehicles that prevents air loss in the tractor in the event of a trailer breakaway or air line failure.

FMVSS-121 Compliant

FMVSS-121 compliant means adhering to the Federal Motor Vehicle Safety Standard 121, relating to air brake systems in heavy vehicles.

Air Reservoirs

Tanks used in automotive and industrial applications to store compressed air, providing a supply for various functions such as braking.

Dump Valve

A valve designed to quickly release pressure, fluids, or gases from a system, used in various applications including turbo engines.