Indicate whether each of the following costs, incurred by a manufacturer
-Corporate jet operating expense
A) Product cost
B) Period cost

Question

Quizplus · Accepted Answer

Corporate jet operating expense is considered a period cost because it is not directly tied to the production process and is expensed in the period in which it is incurred. Period costs are all the costs not included in product costs and are expensed on the income statement in the period they are incurred.

Indicate Whether Each of the Following Costs, Incurred by a Manufacturer