Which of the following accounts would be a period cost rather than a product cost?
A)Depreciation on manufacturing machinery.
B)Maintenance on factory machines.
C)Production manager's salary.
D)Direct Labor.
E)Freight out.

Question

Quizplus · Accepted Answer

Freight out is a period cost because it is related to the delivery of the finished product to the customer and is considered an operating expense. The other options are all related to the production of the product and would be included in the cost of goods sold as product costs.

Which of the Following Accounts Would Be a Period Cost