Which of the following would be considered a period cost for a manufacturing company?
A) indirect materials
B) factory utilities
C) direct labor
D) sales salaries

Question

Quizplus · Accepted Answer

Sales salaries are a period cost because they are not directly tied to the production of goods. Period costs are expenses that are not related to the production process and are expensed in the period in which they are incurred. Indirect materials, factory utilities, and direct labor are all considered to be part of the cost of goods sold and are allocated to the products that are produced.

Which of the Following Would Be Considered a Period Cost