Which of the Following Is a Period Cost for a Manufacturing

question 173

Multiple Choice

Which of the following is a period cost for a manufacturing company?

• A) office rent
• B) wages of factory janitor
• C) insurance cost of production equipment
• D) raw materials

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Definitions:

Growth Rate

The measure of an entity's capacity to expand over a certain period, often expressed as a percentage.

Constant Dividend

A policy where a firm aims to distribute dividends that are consistent and do not vary with its yearly earnings or profits.

Required Rate

The minimum return that investors expect or require from an investment to make it worthwhile.

Sells

Transactions in which an asset is transferred from the seller to a buyer for a certain price.