Which of the following is considered a period cost in absorption costing?
A) variable manufacturing overhead costs
B) fixed selling and administrative costs
C) fixed manufacturing overhead costs
D) semi-variable manufacturing overhead costs

Question

Quizplus · Accepted Answer

Period costs are non-manufacturing costs that are incurred in a specific period and charged directly to the income statement, rather than being included in the cost of goods sold. Fixed selling and administrative costs such as salaries, advertising, and rent are examples of period costs. Variable and fixed manufacturing overhead costs are product costs and are included in the cost of goods sold under absorption costing. Semi-variable costs include both fixed and variable components and may be classified as either period or product costs depending on their nature and usage.

Which of the Following Is Considered a Period Cost in Absorption