Which of the Following Would Not Be a Period Cost

question 89

Multiple Choice

Which of the following would not be a period cost?

• A) research and development
• B) direct materials
• C) advertising costs
• D) office supplies

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Definitions:

Order System

The processes and technology employed by an organization to accept, process, and fulfill customer orders.

Order Cycle Time

A metric that measures the length of the order cycle, or the ability of the order system to react to customer orders.

Perfect Order Rate

A metric used in supply chain management that measures the percentage of orders delivered to the right place, at the right time, in the right condition, and with correct documentation.

Shipped on Time

Shipped on time refers to the process of sending goods to the intended recipient within the promised or scheduled delivery timeframe.