An example of a period cost is
A) insurance on factory equipment.
B) president's salary.
C) property taxes on factory building.
D) wages of factory custodians.

Question

Quizplus · Accepted Answer

The president's salary is an example of a period cost, which is a cost that is not directly related to the production of goods or services. It is instead related to the passage of time, such as salaries, rent, and utilities incurred during a specific period. The other choices (A, C, and D) are examples of product costs, which are costs directly related to the production of goods or services.

An Example of a Period Cost Is