Reference:
Tech Computer manufactures computers in its plant located in Toronto and then ships the computers directly to distributors and retailers. The company's accountant has enlisted you to classify the following company's expenses:
-The delivery charges incurred when shipping the computers to distributors and retailers.
A)Fixed product cost.
B)Variable period cost.
C)Fixed period cost.
D)Variable product cost.

Question

Reference:  
Tech Computer manufactures computers in its plant located in Toronto and then ships the computers directly to distributors and retailers. The company's accountant has enlisted you to classify the following company's expenses:
-The delivery charges incurred when shipping the computers to distributors and retailers.
A)Fixed product cost.
B)Variable period cost.
C)Fixed period cost.
D)Variable product cost.

Quizplus · Accepted Answer

The delivery charges incurred when shipping the computers to distributors and retailers are considered variable period costs as they vary based on the number of units shipped and are incurred during the period in which the shipping occurs.

Reference: Tech Computer Manufactures Computers in Its Plant Located in Toronto