An Example of a Period Cost Is

question 180

Multiple Choice

An example of a period cost is

• A)president's salary.
• B)insurance on factory equipment.
• C)property taxes on factory building.
• D)wages of factory custodians.

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Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding costs directly associated with the production of goods or services.

Merchandising

Merchandising involves purchasing, displaying, and selling products to consumers, with strategies that aim to boost sales and profitability.

Service Enterprises

Businesses that provide intangible products or services to customers rather than tangible goods.

Unadjusted Balance

The initial balance of an account before any adjustments or corrections are made for accounting purposes.