The cost of renting a car for the sales force should be accounted for as:
A) Period cost
B) Manufacturing overhead
C) Prime cost
D) Conversion cost

Question

Quizplus · Accepted Answer

The cost of renting a car for the sales force is considered a period cost because it is an expense that is not directly tied to the production process but rather to the selling and administrative functions of the business. Period costs are expensed in the period in which they are incurred.

The Cost of Renting a Car for the Sales Force