Which of the following is an example of a period cost?
A)insurance on factory equipment
B)president's salary
C)property taxes on factory building
D)wages of factory custodians

Question

Quizplus · Accepted Answer

A period cost is a cost that is not directly tied to the production process, but is tied to a period of time instead. The president's salary is an example of a period cost because it is not directly tied to the production process, but rather a period of time. The other options are all examples of product costs, which are costs that are tied directly to the production process.

Which of the Following Is an Example of a Period