Which one of the following represents a period cost?
A)Company advertisement
B)Depreciation of plant equipment
C)Production manager's salary
D)Direct materials

Question

Quizplus · Accepted Answer

Company advertisement is a period cost as it is not directly related to the production of goods or services. It is instead associated with promoting and marketing the company's products or services to customers. Direct materials, on the other hand, are a product cost as they are used in the production process to manufacture goods. Depreciation of plant equipment is also a product cost as it is associated with the use of fixed assets in the production process. The production manager's salary can be either a product or period cost, depending on the responsibilities of the individual and how their work affects the production process.

Which One of the Following Represents a Period Cost