Each of the Following Would Be a Period Cost Except

question 53

Multiple Choice

Each of the following would be a period cost except:

• A)the salary of the company president's secretary.
• B)sales commissions.
• C)the cost of a general accounting office.
• D)depreciation of a machine used in manufacturing.

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Definitions:

Preincorporation Contracts

Agreements entered into on behalf of a corporation not yet legally formed, which may bind the corporation once it comes into existence.

Promoter

A person or company that finances or organizes events, especially in entertainment or sports.

Personally Liable

Being individually responsible for a debt or legal obligation, meaning personal assets can be used to satisfy the debt if necessary.

Personal Liability

The legal responsibility of an individual to pay debts from personal assets, not protected by a corporation or LLC.