Dangote Cement Plc classifies the salary of its Head of Internal Audit as a cost for management information purposes. Which classification correctly describes this cost?

The Head of Internal Audit performs a governance and oversight function unrelated to the physical production of cement; therefore, the salary cannot be traced to units of output and is not a product cost. It is a period cost — an administrative overhead charged to the income statement in the period it is incurred. Direct labour and prime costs relate only to costs directly traceable to production.