Period costs are costs that:
A)are allocated over several accounting periods
B)non-manufacturing costs for the current period
C)manufacturing costs for the current period
D)none of the options is correct

Question

Quizplus · Accepted Answer

Period costs are expenses that are not directly related to the production of goods or services, but are incurred in the current period to support the overall operations of the business. Examples of period costs include salaries, rent, utilities, advertising, and insurance. These costs are not allocated over multiple accounting periods, but are recognized and expensed in the current period.

Period Costs Are Costs That