Final answer:
Commissions expense and advertising expense are false to be included as part of manufacturing overhead. These expenses are considered selling and administrative expenses, and thus, expensed when incurred not as product costs.
Step-by-step explanation:
The statement that commissions expense and advertising expense are included as part of manufacturing overhead and treated as a product cost is false. Manufacturing overhead typically includes the indirect costs associated with producing a product, such as the cost of utilities, indirect labor, and factory supplies. However, commissions expense and advertising expenses are generally considered selling and administrative expenses, not manufacturing costs. They are treated as period costs and expensed in the period in which they are incurred. Manufacturing overhead costs are those costs associated with the production process, such as rent on a factory or depreciation on production equipment. Fixed costs, such as rent, remain constant regardless of the level of production, while variable costs fluctuate with production volume.