For a manufacturing company, which of the following is an example of a period cost rather than a product cost?
A) Wages of salespersons.
B) Salaries of machine operators.
C) Insurance on factory equipment.
D) Depreciation of factory equipment.

Question

Quizplus · Accepted Answer

Period costs are expenses that are not directly tied to the production process and are expensed in the period they are incurred. Wages of salespersons are considered period costs because they are related to selling activities, not manufacturing.

For a Manufacturing Company, Which of the Following Is an Example