Which of the following costs is NOT a period cost?
A)steel used in steel railings
B)receptionist's salary
C)depreciation on sales staff's cars
D)sales commission

Question

Quizplus · Accepted Answer

Steel used in steel railings is a direct material cost and would be included in the cost of goods sold as a product cost. The other options are all period costs, which are expensed in the period they are incurred and do not become part of the cost of goods sold.

Which of the Following Costs Is NOT a Period Cost