Which of the Following Costs at a Sofa Manufacturing Company

question 105

Multiple Choice

Which of the following costs at a sofa manufacturing company would be treated as a period cost under the variable costing method?

• A) the cost of glue used to assemble the wood frame of each sofa produced
• B) depreciation on sales vehicles
• C) the salary of a factory manager
• D) both B and C above

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Definitions:

Floods

Natural disasters characterized by the overflow of water onto land that is normally dry, often caused by heavy rainfall, storm surges, or the melting of snow and ice.

Droughts

Extended periods of unusually low precipitation leading to a shortage of water.

Human-Activated

Refers to processes or systems that require human action to be initiated or operated, distinguishing from those that function automatically or naturally.

Destroying Vegetation

The act of causing damage or destruction to plant life, often due to human activities or natural disasters.