Multiple Choice QuestionWhich of the following costs would be classified as a period cost?Multiple choice question.Factory maintenance costsProduct machining laborPlant electricityAdvertising expense for the product

The correct answer is "Advertising expense for the product".

Here's why:

A period cost is an expense that is not tied to the production process and is expensed in the period it is incurred. It is not included in the cost of either purchased or manufactured goods - instead, it is typically associated with selling or administration expenses.

Looking at the options:

1. Factory maintenance costs: This is a product cost because it is directly tied to the production process.
2. Product machining labor: This is also a product cost because it is directly involved in manufacturing the product.
3. Plant electricity: This can be a bit tricky because it depends on whether the electricity is used in the administrative office (period cost) or the production plant (product cost). But in this case, it is mentioned as 'Plant electricity' which means it is used in the production process, making it a product cost.
4. Advertising expense for the product: This is a period cost because it is not tied to the production process. It is a selling expense, incurred to sell the product, not to produce it.

So, the answer is "Advertising expense for the product".