Which of the following is a period cost?
A)Depreciation on a factory building
B)The cost of direct materials used
C)Depreciation on a sales showroom
D)The cost of disposing of hazardous waste materials from factory operations

Question

Quizplus · Accepted Answer

Period costs are related to the selling and administrative functions of a company, and are not part of the cost of producing a product. Depreciation on a sales showroom is an example of a period cost. The other options are all examples of product costs, which are costs related to producing a product or service.

Which of the Following Is a Period Cost