Period costs for a manufacturing company would flow directly to:
A) The balance sheet as inventory.
B) The income statement as an expense.
C) Factory overhead.
D) The current schedule of cost of goods manufactured.
E) Cost of goods sold on the income statement.

Question

Quizplus · Accepted Answer

Period costs for a manufacturing company are expensed on the income statement as they are not directly related to the production process. Examples of period costs include marketing and administrative expenses.

Period Costs for a Manufacturing Company Would Flow Directly To