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.

Analyze the role of capital goods versus consumer goods in determining a country’s economic status.

Understand the basic principles and laws governing partnerships.

Recognize the implications of partnership duties and responsibilities on personal liability and profit sharing.

Distinguish between general and limited partnerships and their respective liabilities.

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Definitions:

Product

An item or service created through a process and offered in the market to satisfy a need or want.

Product Innovation

The development of new or improved goods or services that are sold to meet customer needs.

Exploratory Innovation

Risk taking, radical thinking, and experimentation.

Exploitative Innovation

The enhancement and reuse of existing products and processes.