Asked by
Erica Antonitti
on Dec 17, 2024
Verified
Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device.Property taxes on the building that will be purchased to house the manufacturing facility are:
A) a product cost
B) a variable cost
C) an opportunity cost
D) a period cost
Period Cost
Expenditures that are not directly tied to the production process and are expensed in the period in which they are incurred.
Product Cost
The total expense incurred to produce and make ready for sale a product, including direct materials, labor, and overhead costs.
Opportunity Cost
The cost of foregoing the next best alternative when making a decision.
- Recognize and differentiate among diverse categories of expenses, including sunk costs, period costs, product costs, and opportunity costs.
Verified Answer
JM
Learning Objectives
- Recognize and differentiate among diverse categories of expenses, including sunk costs, period costs, product costs, and opportunity costs.