Where would period costs be found on the financial statements?
A)Under current assets on the balance sheet
B)Under current liabilities on the balance sheet
C)As operating expenses on the income statement in the period incurred
D)As operating expenses on the income statement for a previous period

Question

Quizplus · Accepted Answer

Period costs are operating expenses that are incurred during a specific period, such as selling and administrative expenses. They are not associated with producing or purchasing goods, so they are not included in the cost of goods sold. Instead, they are reported as operating expenses on the income statement in the period they are incurred.

Where Would Period Costs Be Found on the Financial Statements