ECONOMICS

Detailed explanation-1: -Cost accountant’s salary is not considered product cost because product cost is those expenses incurred in the production process of a product sold to the customers. Direct material, direct labor, and manufacturing overhead are all included in product costs.

Detailed explanation-2: -Advertisement is a selling cost and not a production cost as it is not directly related to the production of the good. Its is usually classified as a sunk cost or an indirect cost. All other costs are directly related to the production of a good.

Detailed explanation-3: -Solution(By Examveda Team) Legal cost on debt realization is not a selling overhead.

Detailed explanation-4: -Direct costs required to create products and services, such as direct labor and materials, are excluded from overhead costs.

Detailed explanation-5: -Product costs include direct material (DM), direct labor (DL), and manufacturing overhead (MOH).