In both merchandising and manufacturing accounting, selling and administrative costs are period costs.

Question

Quizplus · Accepted Answer

Selling and administrative costs are not directly related to the production or purchase of goods, so they are considered period costs that are expensed in the period in which they are incurred, rather than being included in inventory or cost of goods sold. This applies to both merchandising and manufacturing accounting.

In Both Merchandising and Manufacturing Accounting, Selling and Administrative Costs