Period costs do NOT include which of the following?
A) Sales commissions
B) Factory janitorial costs
C) Insurance on delivery vehicles
D) Advertising costs

Question

Quizplus · Accepted Answer

Period costs are non-manufacturing costs that are not directly related to the production process, such as selling, general, and administrative costs. Factory janitorial costs are related to the manufacturing process and would be considered part of manufacturing overhead. A, C, and D are all examples of typical period costs that would be expensed in the period in which they are incurred.

Period Costs Do NOT Include Which of the Following