Which One of the Following Is an Example of a Period

question 48

Multiple Choice

Which one of the following is an example of a period cost?

• A) A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer
• B) Workers' compensation insurance on factory workers' wages allocated to the factory
• C) A box cost associated with computers
• D) A manager's salary for work that is done in the corporate head office

---

Definitions:

Financial Condition

A snapshot of a company's financial health, represented by its assets, liabilities, and equity positions at a given time.

Paid-In Capital

The sum of funds contributed by investors through the issuance of common or preferred shares, encompassing the nominal value of the stocks plus any additional amounts paid over this value.

Treasury Stock

Refers to shares that were once part of the outstanding shares, but were bought back by the company and are being held in the company's treasury.

Common Stockholders

Individuals or entities that own shares in a corporation, granting them rights to dividends and a vote in certain corporate matters.