Rent on the administrative offices of an automobile manufact

Rent on the administrative offices of an automobile manufacturer is considered: a a variable cost b an opportunity cost ca period cost da product cost

Solution

Correct answer is C.

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Rent of admin. Office is an overhead cost (admin OH), this cost is not part of production cost.

Administrative overhead is a period cost because the value of this type of cost does not transfer forward into future periods.

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 Rent on the administrative offices of an automobile manufacturer is considered: a a variable cost b an opportunity cost ca period cost da product cost Solution

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