Which of the following is a period cost?
A) Direct material.
B) Advertising expense.
C) Indirect labor.
D) Miscellaneous supplies used in production activities.
E) Advertising expense and indirect labor.

Question

Quizplus · Accepted Answer

A period cost is a cost that is not directly tied to the production process, but rather to the general business activities. Advertising expense is an example of a period cost, while direct material and indirect labor are examples of product costs. Miscellaneous supplies used in production activities may be a product cost or a period cost, depending on how they are used.

Which of the Following Is a Period Cost