Questions: Property taxes on a company's factory building would be classified as a(n):

The answer is: period cost.

Explanation for each option:

1. Product cost: This refers to costs that are directly associated with the production of goods. These include direct materials, direct labor, and manufacturing overhead. Property taxes on a factory building are not directly tied to the production process, so they do not fall under product costs.

2. Opportunity cost: This is the cost of forgoing the next best alternative when making a decision. Property taxes are an actual expense incurred by the company and not a hypothetical cost of missed opportunities, so this option is incorrect.

3. Period cost: These are costs that are expensed in the period in which they are incurred, rather than being tied to the production of goods. Property taxes on a factory building are considered period costs because they are incurred over a specific period and are not directly linked to the production process.

4. Variable cost: These costs vary directly with the level of production. Examples include raw materials and direct labor. Property taxes on a factory building are typically fixed costs, meaning they do not change with the level of production, so this option is incorrect.

Therefore, property taxes on a company's factory building would be classified as a period cost.