Which item is a cost of winemaking?

• A. Labor
• B. Insurance
• C. Packaging
• D. Marketing

Answer: (B)

Costs in winemaking include not just the steps of making the wine but the ongoing expenses that keep the operation running. Insurance is an overhead expense that protects the winery’s buildings, equipment, and stock from loss or damage, and it supports the ability to continue producing wine. Because it relates to keeping the winemaking process possible and safeguarded, it is categorized as a cost of winemaking. Labor covers the actual crafting of the wine, packaging is tied to preparing the product for sale, and marketing relates to selling the wine rather than making it. So insurance aligns most clearly with the costs that enable the winemaking process.