Question

For a manufacturing company, which of the following is an example of a period cost rather than a product cost?

(A) Depreciation on factory equipment
(B) Wages of salespersons
(C) Wages of machine operators
(D) Insurance on factory equipment

Answer 1

(B) Wages of salespersons

Step-by-step explanation:

All the other cost can be assigned on a certain % to the product while the Wages of salespersons will be incurred with or without production.