Question

In a manufacturing​ company, accounting,​ legal, and sales expenses related to a specific product are typical examples of product costs. True False

Answer 1

Answer:

False

Explanation:

Accounting,​ legal, and sales expenses are considered period costs.

In a manufacturing company, product costs are the costs of manufacturing a product, e.g. direct labor, materials, machinery and equipment. Product costs are recorded as the costs of goods sold (COGS).

While period costs include administrative and sales expenses, legal expenses, office rent or office depreciation, etc.