Product costs include which of the following?
Correct answer: C. Manufacturing overhead
- A. Selling expenses
- B. General expenses
- C. Manufacturing overhead
- D. Administrative expensesGet Study Guides
Explanation
Product costs are incurred to manufacture or acquire goods and include direct materials, direct labour, and manufacturing overhead. Selling, general, and administrative expenses are period costs because they relate to the period rather than production.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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