Period costs ________.
A) are treated as expenses in the period they are incurred
B) are directly traceable to products
C) are treated as expenses in the following period they are incurred
D) are also referred to as manufacturing overhead costs

Question

Quizplus · Accepted Answer

Period costs are all the costs that are not directly related to the production of goods. They are treated as expenses in the period they are incurred, and they are not included in the cost of goods sold. Examples of period costs include administrative expenses, advertising expenses, and research and development expenses.

Period Costs ________