Which of the following is a period cost?
A)direct materials
B)indirect labour
C)indirect materials
D)depreciation on an office building

Question

Quizplus · Accepted Answer

Depreciation on an office building is a period cost because it is not directly related to the production of goods or services. It is a cost incurred for the general operation and maintenance of the business, regardless of the level of production. Direct materials and indirect labor and materials are all considered to be product costs because they are directly related to the production of goods or services.

Which of the Following Is a Period Cost