Which of the Following Is a Period Cost

question 173

Multiple Choice

Which of the following is a period cost?

• A) manufacturing overhead
• B) direct labor cost
• C) direct materials cost
• D) administrative cost

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Definitions:

Fixed Overhead Budget Variance

This term refers to the difference between the budgeted fixed overhead costs and the actual fixed overhead costs incurred.

Standard Fixed Manufacturing Overhead Rate

The predetermined rate used to apply fixed manufacturing overhead to products, based on an estimate of total fixed manufacturing costs and an allocation basis.

Actual Fixed Overhead Costs

The real costs incurred for fixed overhead during a specified accounting period.

Budgeted Activity

The planned level of output or activity for a specific period, used for planning and control purposes.