Multiple Choice
Which of the following statements best describes the most important thing to remember about bank customers from an accounting perspective?
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1. Introduction to Accounting
Types of Accounting
Multiple Choice
Which of the following would be considered a period cost for a textbook printing company?
A
Salaries of sales staff
B
Depreciation on printing equipment
C
Paper used in printing textbooks
D
Wages of machine operators
Verified step by step guidance1
Understand the concept of period costs: Period costs are expenses that are not directly tied to the production process. These costs are incurred over a specific period and are typically associated with selling, administrative, or general business operations.
Analyze each option provided in the problem: Determine whether each cost is related to production or falls under selling and administrative expenses.
Option 1: Salaries of sales staff - This is a selling expense and is considered a period cost because it is not directly tied to the production of textbooks.
Option 2: Depreciation on printing equipment - This is a production-related cost because the equipment is used in the manufacturing process. It is classified as a product cost, not a period cost.
Option 3: Paper used in printing textbooks and Option 4: Wages of machine operators - Both are directly tied to the production process and are considered product costs, not period costs.
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