Asked by
Angelina Hourn
on Oct 11, 2024
Verified
Property taxes on the building that will be purchased to house the manufacturing facility are:
A) a product cost
B) a variable cost
C) an opportunity cost
D) a period cost
Period Cost
Costs that are not directly associated with the production of goods and are expensed in the period they are incurred, such as administrative and selling expenses.
Variable Cost
Charges that adjust according to the volume of goods produced or sold, specifically materials and labor costs.
Opportunity Cost
The foregone benefit that could have been achieved from options not chosen when selecting one among several alternatives.
- Recognize and elucidate various categories of expenses linked to products and operational activities, including product expenses, period expenses, and opportunity expenses.
Verified Answer
RT
Learning Objectives
- Recognize and elucidate various categories of expenses linked to products and operational activities, including product expenses, period expenses, and opportunity expenses.