Question

Costs that are traceable to a particular unit and inventoriable are called:

a. Product costs.


b. Overhead costs.


c. Period costs.


d. Job costs.

Answer 1

The correct answer is letter "A": Product costs.

Step-by-step explanation:

Product costs are all costs related to production that typically include direct materials, direct labor, and factory overhead. However, depending on the business, costs related to the delivery of the product can be also considered product costs. Product costs can be linked to a unit generating revenue for the company and must be easy to allocate.