Which of the following costs is a period cost?
A)depreciation of factory equipment
B)transportation-in for material shipments
C)amortization of a patent for the company's product
D)depreciation of office computers

Question

Quizplus · Accepted Answer

Period costs are not directly tied to the production process and are expensed in the period they are incurred. Depreciation of office computers is a period cost because it relates to administrative functions, not manufacturing.

Which of the Following Costs Is a Period Cost