When Manufacturing Products,which of the Following Is an Example of a Period

question 134

Multiple Choice

When manufacturing products,which of the following is an example of a period cost?

• A)Advertising expense
• B)Depreciation expense on factory equipment
• C)Indirect materials used in the factory
• D)Property taxes on the plant

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Definitions:

Impairment

The decrease in the recoverable value of an asset below its carrying amount, leading to a write-down value in the balance sheet.

Amortization Expense

Amortization expense is the cost associated with gradually writing off the initial cost of an intangible asset over its useful life.

Capital Asset

Long-term property or investment held by a business or individual, intended for use or investment purposes rather than for sale.

Fair Value Increments

Adjustments made to the book value of assets and liabilities to reflect their current market value during acquisition accounting.