Which of the following could be considered either a product or a period cost depending on the purpose?
A)manufacturing overhead
B)direct labour
C)indirect materials
D)depreciation

Question

Quizplus · Accepted Answer

Depreciation is a cost that can be classified as either a product or a period cost depending on the purpose. If the depreciation costs are associated with the cost of producing a particular product, then it is considered a product cost. On the other hand, if the depreciation costs are associated with the general administration or sales activities, then it is considered a period cost. Manufacturing overhead, direct labor, and indirect materials are always considered product costs.

Which of the Following Could Be Considered Either a Product