When looking at a manufactured product,an example of an inventoriable cost is ________.
A) depreciation expense on office equipment in corporate office
B) insurance expense on vehicles used by sales staff
C) wages of plant security guard
D) clerical salaries in corporate office

Question

Quizplus · Accepted Answer

Wages of plant security guard would be considered an inventoriable cost because it is directly related to the production process and can be attributed to the product. Depreciation expense on office equipment, insurance expense on sales staff vehicles, and clerical salaries are not directly related to the production process and would be considered period costs.

When Looking at a Manufactured Product,an Example of an Inventoriable