In a manufacturing firm, which of the following is an example of a period cost?
A)Advertising expense
B)Depreciation on factory equipment
C)Indirect materials
D)Property taxes for the factory

Question

Quizplus · Accepted Answer

Advertising expense is an example of a period cost, which is a cost that is not directly tied to the production process but rather to the passage of time. Examples of period costs include marketing and advertising expenses, administrative salaries, and office rent.

In a Manufacturing Firm, Which of the Following Is an Example