Which of the following is NOT a period cost?
A) Sales commissions
B) CEO's salary
C) Delivery van depreciation
D) Factory janitorial costs

Question

Quizplus · Accepted Answer

Period costs are all the costs not included in product costs. They are expensed in the period they are incurred. Factory janitorial costs are considered a product cost because they are associated with the manufacturing process, whereas sales commissions, CEO's salary, and delivery van depreciation are not directly tied to the production of goods and are expensed in the period they occur, making them period costs.

Which of the Following Is NOT a Period Cost