Which of the following is not a product cost?
a) Advertising costs.
b) Direct materials.
c) Indirect manufacturing costs.
d) Manufacturing overhead.
e) Direct labor.

Respuesta :

Zviko

Answer:

a) Advertising costs.

Explanation:

All manufacturing costs are treated as product costs when using both the variable costing system and absorption costing system.

Non manufacturing costs are treated as period costs that are expensed in the income statement during the period in which they are incurred.

Advertising costs are non-manufacturing costs and thus a period cost.