Product Cost Components

The video tutorial explains the concept of product costs, which include direct labor, direct materials, consumable supplies, and factory overhead. It highlights the differences between product and service costs, emphasizing labor as the primary cost driver in services. The tutorial also discusses the allocation of indirect costs and the components of product costs, which encompass both direct and indirect expenses.

Explain the concept of factory overhead and its significance in product costs.

What are the differences between product costs and service costs?