Which of the following is an example of a period cost when manufacturing products?
A)Depreciation expense on factory equipment
B)Advertising expense
C)Indirect materials used in the factory
D)Property taxes on the plant

Question

Quizplus · Accepted Answer

Advertising expense is a period cost, as it is not directly related to the production of goods or services. Period costs are expenses that are not directly tied to the production process, but rather are incurred during a specific period of time. Examples include selling, general, and administrative expenses (SG&A), marketing and advertising costs, and research and development expenses. Depreciation expense (A) and property taxes (D) are considered manufacturing overhead costs, which are indirect costs that are incurred during the production of goods. Indirect materials (C) are also considered manufacturing overhead costs.

Which of the Following Is an Example of a Period