Which of the Following Is a Period Cost

question 107

Multiple Choice

Which of the following is a period cost?

• A)Manufacturing overhead
• B)Direct labor cost
• C)Direct materials cost
• D)Administrative cost

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Definitions:

Material R

A specified type of raw material used in the production of goods, referred to as "Material R" for distinction purposes.

Fixed Expenses

Costs that do not change with the level of output or sales and remain constant over a period, such as rent or salaries.

Discontinuing Product

The process of ceasing the manufacture, sale, and support of a product line or brand.

Drag on Profits

Factors or expenses that reduce the overall profitability of a business.