For a lamp manufacturing company,the cost of the insurance on its vehicles that deliver lamps to customers is best described as a:

Question

Quizplus · Accepted Answer

The cost of insurance on delivery vehicles is a period cost because it is not directly related to the manufacturing of the lamps themselves. Period costs are expenses that are not directly tied to the production process, such as selling, general and administrative expenses.

For a Lamp Manufacturing Company,the Cost of the Insurance on Its