Some Companies Believe That as Long as the Sales Revenue

Essay

Some companies believe that as long as the sales revenue a customer generates exceeds the cost of goods sold, that the customer is profitable. However, companies incur product costs, selling costs, and administrative costs.

Required:

a. List three items that would be classified as product costs.

b. List three items that would be classified as selling costs.

c. List three items that would be classified as administrative costs.