For a manufacturing company, which of the following is an example of a period rather than a product cost?
A)Wages of salespersons.
B)Depreciation of factory equipment.
C)Wages of machine operators.
D)Insurance on 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 in which they occur. Wages of salespersons are considered period costs because they are selling expenses, not directly related to manufacturing the product.

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