Which one of the following is an example of a period cost?

A) A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer
B) Workers' compensation insurance on factory workers' wages allocated to the factory
C) A box cost associated with computers
D) A manager's salary for work that is done in the corporate head office

Period Cost

Costs that are expensed in the period they are incurred, not directly tied to the production process and include expenses such as rent, utilities, and administrative salaries.

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.

Factory Workers

Individuals employed in a manufacturing setting to operate machinery and assemble goods.