Which of the Following Statements Is True Regarding Product and Period

question 58

Multiple Choice

Which of the following statements is true regarding product and period costs?

• A) Delivery expense is a product cost and indirect materials is a period cost.
• B) Factory rent is a product cost and advertising expense is a period cost.
• C) Office rent is a product cost and supervisors' salaries expense is a period cost.
• D) Office salaries expense and factory maintenance are both product costs.
• E) Sales commissions and indirect labor are both period costs.

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Definitions:

Vertebral Column

The spine or backbone; a column of vertebrae in the back that protects the spinal cord and supports the body.

Lumbar

Refers to the lower part of the spine between the thoracic region and the sacrum.

Sacrum

A triangular bone at the base of the spine, formed by the fusion of several vertebrae, and situated between the two hip bones.

Thoracic Region

The part of the body that is located between the neck and the abdomen, housing the heart and lungs among other vital organs.