Asked by ThuveNdran Thuven10 on May 29, 2024
Verified
Which of the following is NOT a period cost?
A) Depreciation of factory maintenance equipment.
B) Salary of a clerk who handles customer billing.
C) Insurance on a company showroom where customers can view new products.
D) Cost of a seminar concerning tax law updates that was attended by the company's controller.
Period Cost
Expenses that are not directly tied to the production of goods, such as selling, general, and administrative expenses, which are expensed in the period incurred.
Factory Maintenance Equipment
Tools, machinery, and other equipment used for the upkeep of a manufacturing facility.
Company Showroom
is a dedicated space where a business displays its products or prototypes for customers to view, typically used for marketing and sales purposes.
- Identify the differences between manufacturing-related expenses and costs incurred over a particular timeframe.
Verified Answer
Learning Objectives
- Identify the differences between manufacturing-related expenses and costs incurred over a particular timeframe.
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