Which of the Following Is Not a Period Cost

question 81

Multiple Choice

Which of the following is not a period cost?

• A)Depreciation on factory equipment
• B)Depreciation on the retail store building
• C)Salesperson salaries
• D)Office supplies used

---

Definitions:

Net Advantage

The overall benefit or gain achieved from a specific decision, action, or investment, considered after accounting for all relevant costs and drawbacks.

Operating Lease

A lease agreement allowing for the use of an asset without ownership, typically with shorter terms than a finance lease.

Residual Value

The projected valuation of an asset at the completion of its operational life.

Capital Lease

A lease agreement that has the characteristics of a purchase agreement, where the lessee assumes some risks and benefits of ownership.