Which of These Is an Example of a Product Cost

question 53

Multiple Choice

Which of these is an example of a product cost?

• A) Telephone expense
• B) Assembly line worker's wages
• C) Depreciation of office furniture
• D) Interest expense

---

Definitions:

Personal Income Tax

A tax levied on the income of individuals, which can vary based on income levels and types of income.

State Excise Tax

Taxes imposed by a state on particular goods or activities, such as alcohol, cigarettes, and gasoline.

Federal Excise Tax

A tax imposed by the federal government on the sale of certain goods and services, such as gasoline, alcohol, and tobacco.

Efficiency Loss

The loss of economic efficiency that can occur when the balance between supply and demand is not achieved or when market conditions lead to a misallocation of resources.