Question

g 7) All of the following are examples of product costs except: A) depreciation on the company's retail outlets. B) salary of the plant manager. C) insurance on the factory equipment. D) rental costs of factory equipment.

Answer 1

Answer:

A) Depreciation on the company's retail outlets.

Explanation:

A product cost will be generally explained as the spending done or incurred cost in the production a certain good or the delivery of services. This comes with all the things used in i.e in the production and also the man power, power sources and every other thing attributed in this product production.

Also it well known from a financial and economic angle that o an article expense to qualify or be valued as a production cost, it must have to generate revenue for the company.

This is why in the case above, a depreciation on the company's retail outlets is not considered to be a part of the companies product cost.