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

CS Executive · Cost and Management Accounting · PYQS · December 2014
For a manufacturing company, which of the following is an example of period cost rather than a product cost —
(A) Depreciation on factory equipment
(B) Commission to salesman
(C) Wages of machine operator
(D) Insurance on factory equipment.

Answer & Explanation:

Correct Answer: Option (B)

Correct answer: (B) Commission to salesman.

Topics: Cost Classification

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