Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information:
-If selling and administrative expenses are allocated to different products, they should be reported as a
A)cost of goods manufactured
B)factory overhead cost
C)period cost
D)cost of goods sold

Question

Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information:   ​
-If selling and administrative expenses are allocated to different products, they should be reported as a
A)cost of goods manufactured 
B)factory overhead cost 
C)period cost 
D)cost of goods sold

Quizplus · Accepted Answer

Selling and administrative expenses are considered period costs because they are not directly tied to the production process and are expensed in the period in which they are incurred, rather than being allocated to the cost of producing specific products.

Dawson Company Manufactures Small Table Lamps and Desk Lamps