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Which of the following is a period cost rather than a product cost of a manufacturer?

<p><em><strong>A. Direct materials. </strong></em></p> <p><em><strong>B. Variable overhead.</strong></em></p> <p><em><strong>C. Fixed overhead. </strong></em></p> <p><em><strong>D. Abnormal spoilage.</strong></em></p>

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Question added by Deleted user
Date Posted: 2015/01/10
Jijumon James
by Jijumon James , SENIOR ACCOUNTANT , BADR AL SAMAA HOSPITAL

I think answer is C - ie fixed cost is a period cost for manufacturer. Because it does not have a direct relation with production of goods.

imran Noor -
by imran Noor - , Audit Officer , Auditor General of Pakistan

The correct option is (C)

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