Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device.Rent on the administrative office space is:
A) a variable cost
B) an opportunity cost
C) a period cost
D) a product cost

Question

Quizplus · Accepted Answer

Rent on administrative office space is considered a period cost, as it is not directly related to the production of a specific product. It is incurred over a period of time and is not tied to the number of units produced.

Mark Is an Engineer Who Has Designed a Telecommunications Device