Which of the following is not a period cost?
A) Legal costs.
B) Public relations costs.
C) Sales commissions.
D) Wages of assembly-line workers.
E) The salary of a company's chief financial officer (CFO).

Question

Quizplus · Accepted Answer

Period costs are all costs on the income statement other than product costs. Unlike product costs that are associated with the manufacturing process, period costs are not directly tied to the production process and are expensed in the period in which they are incurred. Wages of assembly-line workers are considered a product cost because they are directly associated with the production of goods.

Which of the Following Is Not a Period Cost