How would property taxes paid on a factory building be classified in a manufacturing company?
A) Fixed, period cost.
B) Fixed, product cost.
C) Variable, period cost.
D) Variable, product cost.

Question

Quizplus · Accepted Answer

Property taxes on a factory building are considered a fixed, product cost because they are a manufacturing overhead cost that does not vary with production levels and are part of the costs associated with producing goods.

How Would Property Taxes Paid on a Factory Building Be