For a merchandising firm,insurance expense on the factory building is a product cost.

Question

Quizplus · Accepted Answer

Insurance expense on the factory building is considered a period cost, not a product cost, as it is not directly associated with the production of the merchandise. Product costs are costs that are directly incurred in the manufacturing or production of a product, while period costs are associated with the general operating expenses of the business.

For a Merchandising Firm,insurance Expense on the Factory Building Is