Which of the Following Costs Is Not Considered to Be

question 51

Multiple Choice

Which of the following costs is not considered to be a period cost?

• A) Warehousing costs
• B) Depreciation of delivery vehicles
• C) Salaries paid to company executives
• D) Freight paid on a purchase of raw materials

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Definitions:

Subsidiary Loss

Financial losses incurred by a subsidiary, which may impact the financial position and results of the parent company.

Deferred Tax Liability

A tax obligation due in the future for income that has been recognized in the financial statements before it is taxable.

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Accounts Payable

Liabilities of a business representing amounts owed to creditors for goods and services received but not yet paid for.