Question

When comparing product versus period costs, which of the below costs would be an example of a product cost?

a. Sales commissions
b. Advertising
c. Accounting salaries
d. Paper towels in the break room inside the factor for the direct labor workers.

Answer 1

The correct answer is letter "D": Paper towels in the break room inside the factor for the direct labor workers.

Step-by-step explanation:

Product costs are those acquired or produced. Direct materials, direct labor, and factory overhead are some examples. Period costs are those associated with the passage of time. Administrative expenses, sales commissions, rent, security services, and office supplies are period costs.

Paper towels regardless of where they are located inside the company are considered product costs.

Answer 2

Answer:D

Explanation:product cost are cost incurred directly as a result of production. And example of product cost is paper towel in The break room, inside the factory for the direct labour market...