Which of the following is a period cost?
A) indirect labour
B) direct materials
C) indirect materials
D) depreciation on an office building

Question

Quizplus · Accepted Answer

Depreciation on an office building is a period cost because it is not directly related to the production process and is incurred during a specific time period (e.g. a year). Indirect labour and indirect materials are both typically considered manufacturing overhead costs and are considered part of product costs. Direct materials are also part of product costs as they can be directly traced to the production of a specific item.

Which of the Following Is a Period Cost