Which of the following is a period cost?
A) Direct material.
B) Advertising expense.
C) Indirect labor.
D) Miscellaneous supplies used in production activities.
E) Factory foreman salary for the motor production line.

Question

Quizplus · Accepted Answer

Advertising expense is considered a period cost because it is not directly tied to the production process and is expensed in the period in which it is incurred. Period costs are not capitalized into inventory or product costs.

Which of the Following Is a Period Cost