Question

An example of a product cost is: A) advertising expense. B) a portion of the president’s...

An example of a product cost is:

A) advertising expense.

B) a portion of the president’s travel expenses.

C) interest expense on a loan to finance inventory.

D) production line maintenance costs.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Your required answer is option D i.e. Production line maintenance costs.

Explanation:

A product cost includes only those expenses or cost that is directly attributable to production like material, labor, direct overhead etc. Advertising expense and travel expense are indirect expense and it arises to increase the sales volume therefore those are not included in the cost of product.

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A company is considering automating a portion of its production process, which is currently performed manually....
A company is considering automating a portion of its production process, which is currently performed manually. Which item is relevant to the company when deciding whether to automate the segment of the production process? A. Direct labor costs B. Depreciation of the sales office C. Advertising expenses D. Sales price of the product
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $130,300 Advertising...
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $130,300 Advertising expense $55,200 Depreciation on plant 62,500 Property taxes on plant 24,300 Property taxes on store 8,270 Delivery expense 26,100 Labor costs of assembly-line workers 116,100 Sales commissions 38,100 Factory supplies used 34,000 Salaries paid to sales clerks 59,300 Work in process inventory was $14,400 at January 1 and $17,600 at December 31. Finished goods inventory was $61,100 at January 1 and $48,500 at December...
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $120,000 Advertising...
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 14,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 Factory supplies used 23,000 Salaries paid to sales clerks 50,000 Work in process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods inventory was $60,000 at January 1 and $45,600 at December...
Sheffield Corporation incurred the following costs while manufacturing its product. Materials used in product $123,100 Advertising...
Sheffield Corporation incurred the following costs while manufacturing its product. Materials used in product $123,100 Advertising expense $48,000 Depreciation on plant 62,700 Property taxes on plant 23,400 Property taxes on store 7,790 Delivery expense 31,200 Labor costs of assembly-line workers 116,000 Sales commissions 36,500 Factory supplies used 25,000 Salaries paid to sales clerks 53,500 Work in process inventory was $13,000 at January 1 and $17,500 at December 31. Finished goods inventory was $63,600 at January 1 and $46,100 at December...
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $129,600 Advertising...
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $129,600 Advertising expense $49,600 Depreciation on plant 70,200 Property taxes on plant 21,000 Property taxes on store 7,690 Delivery expense 31,400 Labor costs of assembly-line workers 120,400 Sales commissions 42,400 Factory supplies used 29,200 Salaries paid to sales clerks 54,400 Work in process inventory was $14,400 at January 1 and $17,000 at December 31. Finished goods inventory was $70,200 at January 1 and $46,400 at December...
Which of the following is an example of a period cost in a company that makes...
Which of the following is an example of a period cost in a company that makes clothing? a. Monthly depreciation on production equipment b. Fabric used to produce men's pants c. Advertising cost for a new line of clothing d. Factory supervisor's salary
Marginal cost equals: Select one: a. average variable cost at its maximum point. b. the change...
Marginal cost equals: Select one: a. average variable cost at its maximum point. b. the change in total fixed cost divided by the change in quantity. c. the change in total variable cost divided by the change in quantity. d. total cost divided by quantity. Noncash expenses are: Select one: a. explicit costs. b. sunk costs. c. incremental costs. d. implicit costs. Opportunity cost is not: Select one: a. a real economic cost. b. an implicit cost. c. a variable...
Which of the following types of interest expense generally is not deductible to any extent? a....
Which of the following types of interest expense generally is not deductible to any extent? a. Interest expense attributable to a $35,000 second mortgage on the taxpayer’s principal residence. (The proceeds of the loan were used to purchase an automobile used solely for personal purposes.) b. Interest expenses attributable to a $90,000 debt secured by a principal residence. (The proceeds of the debt, which exceed the original cost of the home, were used to pay for a vacation.) c. Interest...
8. Classify each of the following costs as a period cost or a product cost. If...
8. Classify each of the following costs as a period cost or a product cost. If you classify the cost as a product​ cost, further classify it as direct material​ (DM), direct labor​ (DL), or manufacturing overhead​ (MOH). ​(If the cost is a period​ cost, leave the classification box​ empty; do not select a​ label.) Period cost If product cost, or product cost DM, DL or MOH a1. Property taxes—30% of building is used for sales, marketing, and administrative offices...
Depreciation on factory equipment is an example of a_____. a. product cost b. prime cost c....
Depreciation on factory equipment is an example of a_____. a. product cost b. prime cost c. period cost d. selling cost
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT