For manufacturing companies,an example of a period cost is ________.
A) direct materials
B) research and development expense
C) direct labor
D) factory overhead

Question

Quizplus · Accepted Answer

Period costs are expenses that are not tied to the production process, but rather are associated with a specific period of time, such as a month or a year. Research and development expenses are a classic example of period costs, as they are incurred to develop new products and improve existing ones, but are not directly tied to the manufacturing process. Direct materials, direct labor, and factory overhead are all examples of product costs, as they are incurred to produce tangible goods.

For Manufacturing Companies,an Example of a Period Cost Is ________