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________ is an example of a period cost rather than a product cost for a manufacturing company. A : Depreciation on factory equipment B : Insurance on factory equipment C : Wages of salespersons D : Wages of machine operators

Answer :

Answer:

The correct answer is letter "C": Wages of salespersons.

Explanation:

Product costs are all those directly related to the production of a good. Examples of product costs are direct materials, direct labor, and overhead. Period costs are those incurred during a period but are not related to the manufacturing of products. Administrative activities and sales commissions are part of period costs.

Thus, salespeople's wages are considered period costs.

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