Which of the following is not a period cost?
A)Legal costs.
B)Public relations costs.
C)Sales commissions.
D)Wages of assembly-line workers.
E)The salary of a company's chief ﬁnancial oﬃcer (CFO).

Question

Quizplus · Accepted Answer

Wages of assembly-line workers are considered product costs because they are directly related to the production of goods. Period costs, on the other hand, are expenses that are not related to production, such as legal costs or public relations costs. The salary of a company's CFO could be either a period cost or a product cost depending on the role the CFO plays in the organization. Sales commissions are also considered period costs because they are not directly related to the production of goods.

Which of the Following Is Not a Period Cost