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

Question

Quizplus · Accepted Answer

Period costs are those costs that are not associated with the manufacturing of a product, such as selling and administrative expenses. While A, B, and C are examples of period costs, D is not because it relates directly to the manufacturing process. Depreciation of a machine used in manufacturing is a product cost, as it is part of the cost of producing the product.

Each of the Following Would Be a Period Cost Except