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A salesperson's salary would be classified as c) a period cost when determining the cost of a manufactured product.
Period costs are costs that cannot be capitalized on a company's balance sheet. That is, they are expensed in the period in which they are incurred and appear on the income statement. Period costs are also known as period costs.
Other examples of period costs include marketing expenses, rents (not directly tied to manufacturing facilities), office depreciation, and indirect labor costs. Interest expense on company debt is also classified as a period expense.
The question is incomplete. Please read below to find the missing content.
A salesperson's salary would be classified as _____ when determining the cost of a manufactured product.
a) a direct cost
b) an indirect cost
c) a period cost
d) none of the above
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