Which of the Following Is an Example of a Period

question 22

Multiple Choice

Which of the following is an example of a period cost in a company that makes clothing?

• A) Fabric used to produce men's pants.
• B) Advertising cost for a new line of clothing.
• C) Factory supervisor's salary.
• D) Monthly depreciation on production equipment.

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Definitions:

Capacity

The maximum level of output that a company can sustain to produce goods or services under a given set of conditions.

Net Loss

The amount by which total expenses exceed total revenues in a company during a specific period, indicating a financial loss.

Discontinue

To discontinue means to stop producing, selling, or providing a product or service, often permanently.

Activity-Based Costing

A costing methodology that assigns costs to products or services based on the resources they consume.