Period costs are the:
A)current assets and liabilities reported on the balance sheet.
B)costs that are incurred and expensed during the same accounting period.
C)costs related to production of products the company purchases and sells.
D)same as manufacturing overhead costs.

Question

Quizplus · Accepted Answer

Period costs are costs that are incurred and expensed during the same accounting period, such as selling expenses and administrative expenses. They are not directly related to the production of products and are not included in the cost of goods sold. Current assets and liabilities reported on the balance sheet are not period costs. Manufacturing overhead costs are a type of product cost, not a period cost.

Period Costs Are The