Which of the Following Is a Period Cost

question 141

Multiple Choice

Which of the following is a period cost?

• A) costs incurred to provide customer service such as the operation of a 800 phone line to trouble shoot product problems and to answer questions about product warranties
• B) the cost of materials used to make a product when those materials are an insignificant part of the finished product
• C) the cost of direct labor
• D) the amount of depreciation expense recognized because of the use of plant assets such as building and equipment

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Definitions:

Urban

Pertaining to a city or town, often characterized by higher population density and vast human features in comparison to areas outside of cities.

Industrial Societies

Societies characterized by the predominance of manufacturing and other forms of production where mechanization plays a significant role.

Class Differences

The distinctions that exist between various social classes, often highlighted by disparities in income, education, and cultural norms.

Upper Classes

Social groups situated at the top of the social hierarchy, often associated with wealth, power, and privilege.