Which of the Following Would Be Considered a Period Cost

question 9

Multiple Choice

Which of the following would be considered a period cost for a manufacturing company?

• A) indirect materials
• B) factory utilities
• C) direct labor
• D) sales salaries

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Definitions:

Income Manipulation

The practice of adjusting financial statements with the intention to mislead stakeholders about the company's financial performance or health.

Deferred Tax Assets

These are financial items on a company’s balance sheet representing taxes paid or carried forward but not yet recognized in the income statement.

Deferred Tax Liabilities

Future tax obligations that arise due to temporary differences between a company's taxable income and its accounting earnings.