[jadarose]

Out of the following which are considered product cost?

a. Depreciation on the production plant
b. Depreciation on the corporate offices
c. Paper, toner, and miscellaneous supplies for the office copy machines
d. Wages of production-line employees
e. Raw materials used in the production of toys
f. Wages of the corporate headquarters’ secretarial staff
g. Maintenance costs on the production equipment
h. Advertising costs
I. Shipping costs for products sold
j. Salaries of plant supervisors
k. Interest on bank loans
l. Property tax on the production plant
m. Property tax on the corporate offices
n. Commissions paid to sales personnel
o. Administrative salaries of corporate executives
:confused: :confused: :confused: :confused: :confused: :confused:

[ScottGem]

Please don't ask or expect us to do your homework for you. If you tell us which YOU think are product costs we can critique your answer.

[jadarose]

a, b, d, e, g, h, I, j?

[ScottGem]

If Product cost is all the items that go into determining what you charge for a product, then that shoukld include all overhead which refers to the cost of doing business. However, if product cost refers only to the direct costs of productions then only the costs of the materials and cost of production come into play.