Which of the following costs is not considered to be a period cost?
A) Warehousing costs
B) Depreciation of delivery vehicles
C) Salaries paid to company executives
D) Freight paid on a purchase of raw materials

Question

Quizplus · Accepted Answer

Period costs are expenses that are not directly tied to the production process and are expensed in the period they are incurred. Freight paid on a purchase of raw materials is a product cost, as it is directly associated with acquiring inventory.

Which of the Following Costs Is Not Considered to Be