For a manufacturing company,which of the following is an example of a period cost rather than a product cost?
A) Depreciation of factory equipment.
B) Wages of salespersons.
C) Wages of machine operators.
D) Insurance on factory equipment.

Question

Quizplus · Accepted Answer

Period costs are expenses that are not directly related to the production process, such as selling and administrative expenses. The wages of salespersons fall under this category, as they are not directly related to the manufacturing process. Depreciation of factory equipment, wages of machine operators, and insurance on factory equipment are all examples of product costs, as they are directly related to the production process.

For a Manufacturing Company,which of the Following Is an Example