The cost of the management accountant working in the front office of a company is a
A)direct, variable, product cost.
B)fixed period cost.
C)fixed product cost.
D)indirect period cost.

Question

Quizplus · Accepted Answer

The management accountant working in the front office is a fixed period cost as it is not directly related to the production of goods or services and is incurred over a specific period of time (such as a month or a year). It is not a direct or variable product cost, nor is it a fixed product cost which is directly related to the production of goods or services. It is also not an indirect period cost which would include items such as rent and utilities for the entire company, not just the front office.

The Cost of the Management Accountant Working in the Front