Which of the Following Is Not Classified as a Period

question 1

Multiple Choice

Which of the following is not classified as a period cost?

• A)The cost of toner for the sales department laser printer
• B)The salary for the president of the company
• C)The cost of utilities for the factory building
• D)the cost of the annual company holiday party.

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Definitions:

Sustainable Growth Rate

The rate at which a company can grow its sales, earnings, and dividends without borrowing new funds.

Debt-equity Ratio

A gauge of a company's use of borrowing relative to the equity provided by its shareholders, determined by dividing liabilities by shareholders' equity.

Plowback Ratio

The proportion of earnings that a company reinvests in its business rather than distributing to shareholders.