Which of the following is a period cost? A. administrative cost B. direct materials cost C. manufacturing overhead D. direct labor cost

Answer: Option (A) is correct.

Explanation:

Correct option: Administrative cost

Administrative cost is a period cost. Period cost is generally associated with the time. The costs which are included in the period cost, are not related with the production procedure. These costs doesn't affect the one specific product, it involves in various products over a period of time.

Example of period cost are as follows:

(1) Selling cost

(2) General cost

(3) Administrative cost

Period costs are considered as an expenses, those incurred during an accounting period.