Which of the following would be a period costs for a textbooks printing company?
A) Wages of a press operator
B) Utility costs of the factory
C) Advertising expenses
D) Paper costs

Question

Quizplus · Accepted Answer

Period costs are expenses that are not directly tied to the production of goods or services. Advertising expenses are a form of period costs, as they are used to promote the company and its products rather than for the direct manufacturing process. Wages of a press operator and paper costs are examples of product costs, as they are directly related to the production of textbooks. Utility costs of the factory can be either product costs or period costs, depending on how they are classified and whether or not they are directly tied to the manufacturing process.

Which of the Following Would Be a Period Costs for a Textbooks