For a manufacturing company, which of the following is a period cost?
A)Direct materials
B)Office rent
C)Wages expense of factory workers
D)Indirect materials

Question

Quizplus · Accepted Answer

A period cost is a cost that is not directly associated with the production of goods. Office rent is an example of a period cost because it is not directly related to the manufacturing process but is necessary to run the overall business. Direct materials, wages expense of factory workers, and indirect materials are all examples of product costs, which are costs directly associated with producing goods.

For a Manufacturing Company, Which of the Following Is a Period