Question

A manager of a large retail firm is interested in knowing what the company's product costs are. Which of the following would be considered a product cost for the manager's company?
A) Direct materials.
B) Product design cost.
C) Office expenses.
D) Selling expenses.
E) Advertising expense.

Answer 1

Answer: Direct materials.

Explanation:

Product cost us referred to as a cost that used to incur production and used to make a particular product. The product cost. The product costs are made up of the direct labor, the direct materials, factory overhead and the production supplies.

Of the options given, the one that'll be considered a product cost for the manager's company will be Direct materials.