An example of a period cost is
A) advertising expense
B) indirect materials
C) depreciation on factory equipment
D) property taxes on plant facilities

Question

Quizplus · Accepted Answer

A period cost is a cost that is not directly related to the production of goods or services. Advertising expense is an example of a period cost as it is incurred to promote products or services and create customer awareness, but it does not directly contribute to the creation of goods or services. Indirect materials, depreciation on factory equipment, and property taxes on plant facilities are all examples of product costs, which are directly related to production.

An Example of a Period Cost Is