Which of the following is NOT a period cost?
A) Depreciation of factory maintenance equipment.
B) Salary of a clerk who handles customer billing.
C) Insurance on a company showroom where customers can view new products.
D) Cost of a seminar concerning tax law updates that was attended by the company's controller.

Question

Quizplus · Accepted Answer

Period costs are not directly related to production and include expenses like selling and administrative expenses. Depreciation of factory maintenance equipment is a product cost as it is directly related to the production process.

Which of the Following Is NOT a Period Cost