Which one of the following is an example of a period cost?
A)A change in benefits for the union workers who work in the Toronto plant of a Fortune 1000 manufacturer
B)Workers' compensation insurance on factory workers wages allocated to the factory
C)A processor used to produce computers
D)A manager's salary for work performed in the corporate head office

Question

Quizplus · Accepted Answer

A period cost is a cost that is not directly related to the production or sale of goods/services, but rather supports the overall operation of the business (e.g. salaries, rent, utilities, etc.). A manager's salary for work performed in the corporate head office is an example of a period cost, as it is not directly related to the production of goods and services.

Which One of the Following Is an Example of a Period