Which of the following would not be considered a product cost?
Multiple Choice
Direct labor costs.
Factory supervisor's salary.
Factory line worker's salary.
Cost accountant's salary.
Manufacturing overhead costs.
--Question requirement is what among the option is NOT A PRODUCT COST.
--Product cost includes direct manufacturing cost and indirect manufacturing cost. Any cost that is not related to 'manufacturing' process is classified as PERIOD COST.
--Correct Answer = Option #4: Budget Accountant's salary is NOT A PRODUCT COST, because its an administrative cost that is not at all related to the manufacturing process.
--Other options
Direct material costs= direct cost.
Factory supervisor's salary = indirect manufacturing cost
Direct labor costs =direct cost.
Manufacturing overhead costs =indirect manufacturing cost.
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