The wages of security guards to protect the factory building are an example of what type of costs?

Wages for security guards protecting the factory building are classified as indirect costs associated with product manufacturing. Indirect costs are those that cannot be directly traced to a specific product but are necessary for the production process; they support the manufacturing activities indirectly. Security guards provide a service that ensures the safety of the factory and its operations, but their wages are not directly tied to the production of a specific unit of product.

Additionally, these costs are categorized as product costs because they are part of the overall expenses incurred to manufacture those products. Product costs encompass all costs related to the production process, including both direct and indirect costs. Since the wages of security guards help maintain the factory environment conducive to production, they fit within this classification.

In contrast, other options may refer to costs that do not accurately represent the nature of security guard wages. For instance, direct costs would refer to expenses that are directly tied to the production of specific goods, while period costs are typically associated with non-manufacturing activities, not directly related to production or inventory.