Which of the following is an example of a period cost for a manufacturing company?
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 because it is not directly related to the manufacturing process or the production of goods. Instead, it is an expense that is incurred to promote the company or its products and is expensed in the period in which it is incurred.

B) Depreciation on factory equipment is a product cost because it is a cost that is directly related to the manufacturing process and the production of goods.

C) Indirect materials are also a product cost because they are materials that are used in the manufacturing process and are necessary for the production of goods.

D) Property taxes for the factory can be either a period or a product cost, depending on how they are allocated. If they are allocated to specific products or manufacturing processes, then they are a product cost. If they are not directly related to the manufacturing process or the production of goods, then they are a period cost.

Which of the Following Is an Example of a Period