Which of the following is an example of a period cost?
A) Advertising expense
B) Depreciation on factory equipment
C) Indirect materials
D) Property taxes for the factory

Question

Quizplus · Accepted Answer

Advertising expense is considered a period cost because it is incurred for promoting and selling a product, which is a cost associated with the specific time period and not directly related to production.

Answer: D 
 Property taxes for the factory are also considered a period cost as they are part of operating expenses associated with the specific time period and not directly related to production.

B and C are examples of product costs as they are directly related to production.

Which of the Following Is an Example of a Period