Which of the following costs is a period cost for a manufacturing company?
A)accountant's salary
B)wages of machine operators
C)insurance on factory equipment
D)fringe benefits on factory employees

Question

Quizplus · Accepted Answer

Period costs are expenses that are not directly related to the production of goods, but are necessary to keep the business running, such as salaries, rent, and utilities. Accountant's salary is a period cost as it is an administrative expense and not directly related to the manufacturing process. The other choices (B, C, and D) are all examples of product costs as they are directly related to the manufacturing process.

Which of the Following Costs Is a Period Cost for a Manufacturing