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 not directly related to the production process. Period costs are expenses that are not directly tied to the manufacturing of a product, but rather occur during a specific period of time, such as a month or year. Direct labour and materials are both direct costs of production, while manufacturing overhead includes indirect costs such as utilities and depreciation.

Which of the Following Is a Period Cost for a Manufacturer