Asked by dreya flores on May 14, 2024
Verified
The corporate controller's salary would be considered a(n) :
A) product cost.
B) administrative cost.
C) selling expense.
D) manufacturing cost.
Administrative Cost
Expenses related to the general operation of a company, including office salaries, utilities, and legal fees, but not including production costs.
- Identify the contrast between product costs and period costs.
- Understand the importance of direct and indirect costs in cost accounting.
Verified Answer
KS
Kolten StevensMay 17, 2024
Final Answer :
B
Explanation :
The corporate controller's salary would be considered an administrative cost, which relates to the general management of the business as a whole and not directly to the production or sale of any specific product.
Learning Objectives
- Identify the contrast between product costs and period costs.
- Understand the importance of direct and indirect costs in cost accounting.