Period costs for a manufacturing company would flow directly to:
A)The income statement as an expense.
B)Factory overhead.
C)The balance sheet as inventory.
D)Cost of goods sold on the income statement.
E)The current schedule of cost of goods manufactured.

Question

Quizplus · Accepted Answer

Period costs, such as selling and administrative expenses, are not related to the production of goods and therefore flow directly to the income statement as expenses.

Period Costs for a Manufacturing Company Would Flow Directly To