For a lamp manufacturing company,the cost of the insurance on its vehicles that deliver lamps to customers is best described as a:
A) Prime cost.
B) Manufacturing overhead cost.
C) Period cost.
D) Differential cost of a lamp.

Question

Quizplus · Accepted Answer

The cost of insurance on the company's vehicles that deliver lamps to customers is a period cost. This cost is not directly related to the manufacturing process or production of the lamps themselves, but rather to the period in which they are sold and delivered.

For a Lamp Manufacturing Company,the Cost of the Insurance on Its