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Commerce · Q308

Costing

Graduate and Post Graduate · Commerce · question 308

Q308

All costs, which are assigned to manufactured products for specific calculations are classified as

A.
contracting costs
B.
product cost
Answer
C.
government costs
D.
marketing costs

Answer: Option B

Solution

Answer: Option B
Solution:
All costs, which are assigned to manufactured products for specific calculations are classified as product cost. Product cost refers to the costs incurred to create a product. These costs include direct labor, direct materials, consumable production supplies, and factory overhead.