Which of the following statements is true regarding period costs?
A) They "attach" themselves to the product.
B) They will appear the balance sheet until the product is sold.
C) They will appear on the income statement in the year they are incurred.
D) They will not impact gross margin or net operating income.

Question

Quizplus · Accepted Answer

Period costs are treated as expenses and are not directly related to the production of a specific product. Therefore, they will appear on the income statement in the period in which they are incurred.

Which of the Following Statements Is True Regarding Period Costs