Which of the Following Is Not a Period Cost

question 35

Multiple Choice

Which of the following is not a period cost?

• A)Advertising costs
• B)Accounting staff salaries
• C)Direct materials
• D)Depreciation of accounting office equipment

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Operating Hours

The hours during which a business is open to customers, typically specified for workplaces, retail stores, or service providers.

Machine Purchase

The acquisition of industrial or office machinery, usually considered a long-term investment in assets.

Extraordinary Repair

Major repairs extending the useful life of an asset far beyond the normal maintenance.