Which of the following is a period cost for a manufacturing company?
A) office rent
B) wages of factory janitor
C) insurance cost of production equipment
D) raw materials

Question

Quizplus · Accepted Answer

Office rent is a period cost for a manufacturing company because it is not directly related to the production process. Period costs are expenses that are not directly tied to the manufacturing of products, but rather to the operation of the business as a whole. The other options are all related to the production process and would be classified as product costs.

Which of the Following Is a Period Cost for a Manufacturing