Rent expense incurred on a factory building would be treated as a(n):
A) indirect cost
B) period cost
C) product cost
D) both A and C are correct

Question

Quizplus · Accepted Answer

Rent expense on a factory building is considered an indirect cost because it is not directly traceable to a specific product. It is also a product cost because it is part of the manufacturing overhead, which is included in the cost of goods manufactured.

Rent Expense Incurred on a Factory Building Would Be Treated