D is corrent. Salespersons’ wages are not associated with the production process and, therefore, would not be considered a product cost. The wages of salespersons are considered a period cost and are expensed in the period incurred.
A is incorrect because depreciation on factory equipment is an element of the product cost, manufacturing overhead.
B is incorrect because insurance on factory equipment is an element of the product cost, manufacturing overhead.
C is incorrect because wages of machine operators would be considered direct manufacturing labor and therefore a product cost.
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