Final answer:
The statement is true; quality inspectors are considered a period cost. They are non-manufacturing expenses related to quality control and are expensed in the period they are incurred, not during the manufacturing process.
Step-by-step explanation:
The statement 'Quality inspectors are a period cost' is True. Period costs are costs that are not directly tied to the production process and are charged to the periods in which they are incurred. Quality inspection is considered a non-manufacturing cost, as it does not directly relate to the manufacturing of the product, but rather to the overall quality control activities of the company.
Period costs, including quality inspection costs, are often considered selling, general, and administrative expenses (SG&A). These costs are expensed on the income statement in the period they are incurred, unlike product costs (e.g., direct materials, direct labor, and manufacturing overhead), which are capitalized as part of inventory costs and expensed as cost of goods sold when the product is sold.
Therefore, since quality inspectors' wages are not incurred as a part of the manufacturing process but rather as part of maintaining the product's quality and compliance with standards, these costs are classified as period costs.