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True [87]
2 years ago
14

Which of the following is an example of a period cost in a company that makes clothing? Multiple Choice Monthly depreciation on

production equipment. Advertising cost for a new line of clothing. Factory supervisor’s salary. Fabric used to produce men’s pants.
Business
1 answer:
abruzzese [7]2 years ago
3 0

An example of a period cost in a company that makes clothing is monthly depreciation on production equipment.

<h3>What is a period cost?</h3>

Period costs are all costs that cannot be capitalised on a company's balance sheet. It is a cost that cannot be tied to the production of the goods made by the company.

Example of period costs are:

  • Travel and entertainment expenses.
  • Commissions.
  • Depreciation expense.
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