Insurance on factory building
A)Product cost - direct materials
B)Product cost - direct labor
C)Product cost - factory overhead
D)Period cost - selling expense
E)Period cost - administrative expense

Factory Building

A structure designed for the manufacture of goods, housing the machinery, equipment, and labor force required for production.

Insurance

A contractual agreement where one party pays premiums in exchange for a promise of compensation for specified potential future losses or damages.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct labor and direct materials, such as utilities, depreciation, and maintenance of equipment.