Which of the Following Costs Is Considered a Period Cost

question 29

Multiple Choice

Which of the following costs is considered a period cost under variable costing?

• A)direct labor
• B)direct materials
• C)fixed manufacturing overhead
• D)variable manufacturing overhead

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Definitions:

Emissions Standard

Legal limit on the amount of pollutants that a firm can emit.

Marginal External Cost

The additional cost incurred by society due to one more unit of a good or service being produced, that is not accounted for by the producer.

External Cost

A cost of a transaction that affects someone who is not directly involved in the transaction.

Profit Maximizing

A strategy or point at which a firm decides the price and output level that leads to the maximum profit.