Asked by Alyssa Cansler on May 08, 2024
Verified
Which of the following is a period cost?
A) depreciation on factory lunchroom furniture
B) salary of telephone receptionist in the sales office
C) salary of a security guard for the factory parking lot
D) computer chips used by a computer manufacturer
Period Cost
Expenses that are not directly tied to the production of goods and are expensed in the period in which they are incurred, such as selling and administrative costs.
Factory Lunchroom
An area within a manufacturing facility allocated for employee meals and breaks.
- Distinguish between product costs and period costs.
Verified Answer
FV
Fredelyne VixamaMay 10, 2024
Final Answer :
B
Explanation :
Period costs are all the costs not directly tied to the production process. The salary of a telephone receptionist in the sales office is a period cost because it is an expense that does not directly relate to the production of goods or services.
Learning Objectives
- Distinguish between product costs and period costs.
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