For a manufacturing company which of the following is an example of a period cost rather than a product cost?
A) Depreciation on factory equipment
B) Wages of salespersons
C) Wages of machine operators
D) Insurance on factory equipment

Question

Quizplus · Accepted Answer

Period costs are expenses that are not directly related to the production of a product. Wages of salespersons are an example of a period cost as they are related to selling and marketing activities rather than the actual production of the product. Depreciation on factory equipment, wages of machine operators, and insurance on factory equipment are all examples of product costs as they are directly related to the production process.

For a Manufacturing Company Which of the Following Is an Example