Period costs are the ________.
A) product costs that must be paid in the accounting period in which they are incurred
B) costs that are incurred and expensed during the same accounting period
C) costs related to production of products the company purchases and sells
D) same as manufacturing overhead costs

Question

Quizplus · Accepted Answer

Period costs are costs that are incurred and expensed during the same accounting period. Examples include selling and administrative expenses such as salaries, rent, and advertising. They are not product costs that are directly related to the production of goods. Manufacturing overhead costs are a type of product cost, not a synonym for period costs.

Period Costs Are the ________