The accounting records of Banff Corporation revealed the following selected costs: Sales commissions, $25,000; plant supervision, $88,600; and administrative expenses, $179,400. Banff Corporation's period costs total:
A)$25,000.
B)$88,600.
C)$179,400.
D)$204,400.
E)$293,000.

Question

Quizplus · Accepted Answer

Period costs are the expenses that are not directly related to the production of goods or services. In this case, sales commissions, plant supervision, and administrative expenses are all period costs. To find the total period costs, we add these three costs:

$25,000 + $88,600 + $179,400 = $293,000

Therefore, the period costs of Banff Corporation are $293,000. The correct answer is option D.

The Accounting Records of Banff Corporation Revealed the Following Selected