Period costs for a manufacturing company would flow directly to:
A) The current income statement.
B) Factory overhead.
C) The current balance sheet.
D) Job cost sheet.
E) The current manufacturing statement.

Question

Quizplus · Accepted Answer

Period costs, such as selling and administrative expenses, are not directly related to the production process and are expensed in the current income statement. These costs are not included in the calculation of the cost of goods sold or inventory on the balance sheet.

Period Costs for a Manufacturing Company Would Flow Directly To