Asked by
Cooper Barber
on Nov 17, 2024
Verified
Insurance expense incurred on a factory building would be treated as a
A) direct cost
B) period cost
C) product cost
D) selling cost
Insurance Expense
The cost incurred by a business to secure insurance coverage against various risks, recorded as a periodic expense.
Factory Building
A structure purposely designed and constructed for manufacturing operations, housing machinery, equipment, and workers.
Product Cost
The total expense incurred to produce a product, inclusive of direct materials, labor, and overhead costs.
- Identify the distinctions among direct materials, direct labor, and factory overhead costs.
- Understand the categorization of insurance expenses in cost accounting.
Verified Answer
IP
Learning Objectives
- Identify the distinctions among direct materials, direct labor, and factory overhead costs.
- Understand the categorization of insurance expenses in cost accounting.