Question

Travel expenses incurred by the sales department of a manufacturing company would be classified as: a. indirect labor b. manufacturing overhead c. a period cost d. a conversion cost e. a product cost

Answer 1

Answer:

c. a period cost

Explanation:

Option C, period cos is the correct answer because the period cost is not related to the production and manufacturing of the commodity. Rather it is the cost incurred outside the factory such as marketing expenses, travelling expenses, etc. Therefore, the option "period cost" is the correct answer.