Which of the following is a period cost for a manufacturer?
A)direct labour
B)direct materials
C)freight out
D)manufacturing overhead

Question

Quizplus · Accepted Answer

Freight out is a period cost because it is incurred after the manufacturing process is completed and is not directly associated with the production of a specific product. Direct labour and direct materials are both examples of product costs because they are directly tied to the creation of a specific product. Manufacturing overhead is also a product cost because it includes expenses such as rent, depreciation, and utilities that are incurred during the manufacturing process.

Which of the Following Is a Period Cost for a Manufacturer