Costs that are expensed when incurred are called:
A) product costs.
B) direct costs.
C) inventoriable costs.
D) period costs.
E) indirect costs.

Question

Quizplus · Accepted Answer

Period costs are expenses that are incurred during a specific period and are expensed in that period, rather than being capitalized as part of the cost of a product. This includes selling, general, and administrative expenses.

Costs That Are Expensed When Incurred Are Called