Period costs include
A) current assets on the balance sheet
B) current liabilities on the balance sheet
C) operating costs that are shown on the income statement when products are sold
D) operating costs that are shown on the income statement in the period in which they are incurred

Question

Quizplus · Accepted Answer

Period costs are operating costs that are shown on the income statement in the period in which they are incurred. They are not related to the production or sale of a specific product and are expensed as incurred. Current assets and current liabilities are balance sheet items and not considered period costs.

Period Costs Include