ECONOMICS

Detailed explanation-1: -Advertising expenses are not a product cost as they are not directly related to the production process. Instead, advertising expenses are considered a period cost and are expensed as incurred, rather than being included in the cost of the products produced.

Detailed explanation-2: -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-3: -Product cost refers to the costs incurred to create a product. These costs include direct labor, direct materials, consumable production supplies, and factory overhead.

Detailed explanation-4: -Cost of bottles used in the production of soft drinks is not a fixed cost. Fixed costs are normally agreed for a defined period of time and do not adjust at the pace of production. Rents, pension, property tax, wages, total depreciation, etc.

Detailed explanation-5: -Direct materials is considered the most purely variable cost of all, these are the raw materials that go into a product.