Sheen Manufacturing has four manufacturing cost pools and many types of costs, some of which ar e listed below. Match the type of cost with the most appropriate cost pool or as a period cost.
-property taxes on the administration office
A) Cost pool - indirect factory operating costs
B) Cost pool - direct factory labour
C) Cost pool - indirect factory labour
D) Period cost

Question

Quizplus · Accepted Answer

Property taxes on the administration office are not directly tied to the manufacturing process and are therefore classified as period costs. Period costs are expensed in the period in which they are incurred, rather than being allocated to the cost of producing goods.

Sheen Manufacturing Has Four Manufacturing Cost Pools and Many Types