For a manufacturing business, which of the following would be considered a period cost?
A)Indirect materials
B)Factory utilities
C)Direct labor
D)Sales salaries

Question

Quizplus · Accepted Answer

Period costs are expenses that are not directly related to the production of goods or services, but are incurred over a period of time for the purpose of selling or managing the business. Sales salaries are an example of a period cost, as they are incurred as a result of the company's efforts to generate revenue through sales, and are not directly related to the production process. Indirect materials, factory utilities, and direct labor are all examples of manufacturing or production costs.

For a Manufacturing Business, Which of the Following Would Be