Each of the following would be a period cost except:
A)the salary of the company president's secretary.
B)the cost of a general accounting office.
C)depreciation of a machine used in manufacturing.
D)sales commissions.

Question

Quizplus · Accepted Answer

Period costs are not directly related to the production process, but rather are expenses incurred that are not associated with the making of a product. Option A, B, and D are all period costs. However, depreciation of a machine used in manufacturing is a product cost because it is a cost associated directly with the production process.

Each of the Following Would Be a Period Cost Except