For a Manufacturing Company,which of the Following Is an Example

question 40

Multiple Choice

For a manufacturing company,which of the following is an example of a period cost rather than a product cost?

• A) Depreciation of factory equipment.
• B) Wages of salespersons.
• C) Wages of machine operators.
• D) Insurance on factory equipment.

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Definitions:

Economic Decisions

The choices made by individuals, firms, or governments regarding the allocation of resources to satisfy needs and desires.

Corporate Owners

Individuals or entities that legally own shares of stock in a corporation, thus holding ownership interests in the company.

Corporate Managers

Individuals responsible for making strategic and operational decisions in a company, aiming to achieve organizational objectives.

Principals

Individuals or entities who authorize agents to act on their behalf in various transactions or decisions.