Which of the following is a period cost?
A) sales promotion expenses
B) direct material cost
C) direct labor cost
D) indirect manufacturing costs like plant insurance

Question

Quizplus · Accepted Answer

Period costs are expenses that are not directly related to the production process, and includes selling and administrative expenses such as sales promotion expenses. Direct material cost and direct labor cost are examples of product costs, while indirect manufacturing costs like plant insurance are examples of manufacturing overhead costs.

Which of the Following Is a Period Cost