An example of a period cost would be the
A)salary to the CEO.
B)materials purchased to manufacture the product.
C)salary to the factory supervisor.
D)property insurance paid for the manufacturing facility.

Question

Quizplus · Accepted Answer

Period costs are expenses that are not directly tied to the production process and are expensed in the period in which they occur. The salary to the CEO is an example of a period cost because it is an administrative expense, not directly related to manufacturing the product.

An Example of a Period Cost Would Be the