Rent Expense on a Factory Building Would Be Treated as A(n)

question 5

Multiple Choice

Rent expense on a factory building would be treated as a(n)

• A) period cost
• B) product cost
• C) indirect cost
• D) direct material cost

---

Definitions:

Burns Down

Refers to the act of a structure being destroyed or damaged by fire.

Rent Payment

Rent payment refers to the periodic monetary compensation that a tenant agrees to pay to a landlord in return for the use of rental property.

Joint Tenants

A form of ownership where two or more parties hold property together, with equal rights and obligations, and where upon the death of one, the surviving tenant(s) automatically inherits the deceased's share.

Parcel of Land

A specific piece of land, defined by boundaries, that is owned or meant to be owned as a unit.