Which One of the Following Costs Is Classified as a Period

question 93

Multiple Choice

Which one of the following costs is classified as a period cost? (CIA adapted)

• A) The wages of the workers on the shipping docks who load completed products onto outgoing trucks.
• B) The wages of a worker paid for idle time resulting from a machine breakdown in the molding department.
• C) The payments for employee (fringe) benefits paid on behalf of the workers in the manufacturing plant.
• D) The wages paid to workers for reworking defective products that failed the quality inspection upon completion.