Which of the Following Statements Is Regarding Product and Period

question 42

Multiple Choice

Which of the following statements is regarding product and period costs?

• A) Office salaries expense is a product cost and factory maintenance is a period cost.
• B) Office rent is a product cost and supervisors' salaries expense is a period cost.
• C) Factory rent is a product cost and advertising expense is a period cost.
• D) Delivery expense is a product cost and indirect materials is a period cost.
• E) Sales commissions is a product cost and indirect labor is a period cost.

---

Definitions:

Property Rights

Legal rights that delineate the ownership and utilization of resources, including the right to transfer, use, or exclude others from use.

Profit Maximization

The process by which a business seeks to achieve the greatest possible profit with the least possible cost and risk.

Industrial Waste

Waste produced by industrial activities, including chemicals and by-products that can be hazardous to the environment and human health.

Property Rights

Legal rights to possess, use, and dispose of assets freely. Property rights secure ownership and encourage investment by protecting and enforcing the legal ownership of resources.