Which of the following items is not a product cost?

a. Transportation cost on merchandise purchased from suppliers.

b. Cost of merchandise purchased for resale.

c. All of these answer choices are product costs.

d. Transportation cost on goods delivered to customers.

Question

Business

Patience Ellis

19 December, 15:50

Which of the following items is not a product cost?

a. Transportation cost on merchandise purchased from suppliers.

b. Cost of merchandise purchased for resale.

c. All of these answer choices are product costs.

d. Transportation cost on goods delivered to customers.

+5

Answers (1)

Know the Answer?

Remington Fletcher · Answer 1

d. Transportation cost on goods delivered to customers.

Explanation:

Product cost is defined as the cost a business bears as a result of producing a product. This includes labor, cost of supplies, factory overhead costs, and cost of transporting supplies.

The cost of transporting product to the consumer is logistics cost.

Which of the following items is not a product cost?a. Transportation cost on merchandise purchased from suppliers.b. Cost of merchandise purchased for resale.c. All of these answer choices are product costs.d. Transportation cost on goods delivered to customers.

Which of the following items is not a product cost?

a. Transportation cost on merchandise purchased from suppliers.

b. Cost of merchandise purchased for resale.

c. All of these answer choices are product costs.

d. Transportation cost on goods delivered to customers.