Which of the Following Items Is Not a Product Cost

question 50

Multiple Choice

Which of the following items is not a product cost?

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

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Definitions:

Marginal Product

The extra output that is produced by using one more unit of a variable input, holding other inputs constant.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input.

Supply of Labor

The total hours that workers are willing and able to work at a given wage rate, in a given time period.

Net Migration

The difference between the number of individuals entering and leaving a geographic area during a specific time period, which can impact population size and composition.