Question

Which of the following costs incurred by a furniture manufacturer would be a product cost?

a. lumber
b. commissions paid to sales staff
c. office salaries
d. controller's salary

Answer 1

Lumber would be a product cost as it is directly used in the manufacturing process of furniture.

Step-by-step explanation:

A product cost is a cost that is directly incurred in the production of a product. It includes costs of raw materials, direct labor, and manufacturing overhead. Out of the options given, lumber would be a product cost as it is directly used in the manufacturing process of furniture.