Period costs are not inventoriable costs.

Name: Period costs are not inventoriable costs.
Brand: Quizplus
Rating: 5.0 (34 reviews)

Question

Quizplus · Accepted Answer

Period costs are expenses that are charged to the income statement in the period in which they are incurred, and they are not associated with the production of goods or services. Therefore, they are not inventoriable costs, which are costs that are related to the production process and are included in the cost of goods sold. Examples of period costs include salaries, rent, utilities, advertising, and insurance.

Period Costs Are Not Inventoriable Costs