Which of the following statements most accurately describes financial accounting's view of period costs?
A) Period costs are all costs incurred in the current financial reporting period.
B) Period costs are all direct costs incurred in the current financial reporting period.
C) Period costs are all non-manufacturing expenses incurred in the current financial reporting period.
D) Period costs are a component of fully absorbed costs.

Question

Quizplus · Accepted Answer

All non-manufacturing costs that expire during the accounting period are recorded as an expense of the period, not as an increase in the cost of a product.

Which of the Following Statements Most Accurately Describes Financial Accounting's