00:01
This question is asking us to compare period costs and product costs and wants us to know which is not a period cost.
00:24
So just something to note product costs are directly involving producing a product.
00:31
So direct involvement of production.
00:47
This could be direct labor, raw material.
00:51
Manufacturing supplies, an overhead that is directly tied to the production facility.
01:00
Whereas period costs are not directly related to a product.
01:09
So not directly related, but still necessary to operate the business.
01:22
So like sales, admin expense, marketing, other administrative costs, those are all period costs.
01:33
So let's look at the four options available.
01:35
So the first one is the salary of the company president's secretary.
01:39
So that would be here.
01:41
Salary of secretary...