Question

Which of the following cost is not a product cost?
(a) Depreciation on the plant installed in the factory
(b) the electricity cost of the office of factory foreman
(c) the cost of shipping finished products to customers
(d) the cost of fule used in the factory

Answer 1

I think option A is your answer
Hope it helps you
Have a good day

Answer 2

The cost of shipping finished products to consumers is not a product cost.

• A product cost or production cost is a cost that is incurred during the production of a product in a factory. It includes direct costs such as raw materials, indirect costs and labour costs.

• Shipping cost is not included in the production cost but is included in the selling cost of a product. The shipping and storage of manufactured finished goods for sales of the product are often calculated in the selling cost.

The correct answer is(c) the cost of shipping finished products to the customers.