Reference:
Tech Computer manufactures computers in its plant located in Toronto and then ships the computers directly to distributors and retailers. The company's accountant has enlisted you to classify the following company's expenses:
-Annual subscription fee paid to computer magazine.
A)Variable period cost.
B)Fixed period cost.
C)Fixed product cost.
D)Variable product cost.

Question

Reference: 
Tech Computer manufactures computers in its plant located in Toronto and then ships the computers directly to distributors and retailers. The company's accountant has enlisted you to classify the following company's expenses:
-Annual subscription fee paid to computer magazine.
A)Variable period cost.
B)Fixed period cost.
C)Fixed product cost.
D)Variable product cost.

Quizplus · Accepted Answer

The annual subscription fee paid to a computer magazine is a fixed period cost since it represents a fixed cost incurred on a regular interval (annually in this case). It is not directly related to the production or sale of a particular product.

Reference: Tech Computer Manufactures Computers in Its Plant Located in Toronto