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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.

Respuesta :

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

What is a period cost?

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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