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 incurred in the current accounting period and is not directly related to the production of goods or services. Depreciation of plant equipment is a product cost as it is allocated to the cost of goods produced. Production manager's salary may be either a period cost or a product cost depending on the specific duties performed by the manager. Direct materials are a product cost as they are used in the production of goods.

Which One of the Following Represents a Period Cost