Which of the following is a period cost?
A)Direct materials.
B)Direct labour.
C)Indirect materials.
D)Insurance on a manufacturing plant.
E)Sales commissions.

Question

Quizplus · Accepted Answer

Period costs are expenses that are not tied directly to the production process and are expensed in the period they are incurred. Sales commissions are considered period costs because they are related to selling activities, not manufacturing.

Which of the Following Is a Period Cost