Which cost is normally treated as a period cost rather than a product cost?
Correct answer: B. Salary of the sales manager
- A. Direct materials used in production
- B. Salary of the sales manager
- C. Depreciation of factory machinery
- D. Wages of assembly-line workers
Explanation
The sales manager's salary is a selling expense incurred for a period and is therefore a period cost. Production costs such as direct materials, direct labour and factory depreciation are normally product costs.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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