Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-National advertising campaign costs
A)Product Cost, Direct Material
B)Product Cost, Direct Labour
C)Product Cost, Manufacturing Overhead
D)Product Cost, Selling Expense
E)Product Cost, Administrative Expense
F)Period Cost, Direct Material
G)Period Cost, Direct Labour
H)Period Cost, Manufacturing Overhead
I)Period Cost, Selling Expense
J)Period Cost, Administrative Expense

Question

Quizplus · Accepted Answer

National advertising campaign costs are considered a period cost, specifically a selling expense. Period costs are expenses that are not directly related to the production of goods and are recognized in the period they are incurred. Selling expenses refer to costs that are incurred to promote and sell the product.

Select the Appropriate Classification of Each of the Costs Listed