Which of the following would NOT be considered period costs?
A)Depreciation of factory equipment
B)Utilities of retail location
C)Depreciation on sales force vehicles
D)Property insurance on corporate headquarters

Question

Quizplus · Accepted Answer

Period costs are expenses that are not related to the production of goods or services, but rather support the overall operation of the business. B, C, and D are all examples of period costs, as they are expenses incurred in support of the retail and corporate operations. Depreciation of factory equipment, however, is a cost directly related to the production of goods and therefore considered a product cost, not a period cost.

Which of the Following Would NOT Be Considered Period Costs