Which of the following properly describes the accounting for corporate headquarters' property taxes?
A) The property taxes are product costs and are expensed as incurred.
B) The property taxes are period costs and are expensed as incurred.
C) The property taxes are product costs and are expensed when the manufactured product is sold.
D) The property taxes are period costs and are expensed when the manufactured product is sold.

Question

Quizplus · Accepted Answer

Corporate headquarters' property taxes are considered period costs and expensed as incurred because they are not directly related to the production of a specific product.

Which of the Following Properly Describes the Accounting for Corporate