Which statement best describes a period cost?
A) It is used to calculate product cost.
B) It includes selling costs and administrative costs.
C) It is carried in inventory until the goods are sold.
D) It can be included in manufacturing overhead costs.

Question

Quizplus · Accepted Answer

A period cost is not related to the production process and is expensed in the period incurred. Selling costs and administrative costs are examples of period costs.

Which Statement Best Describes a Period Cost