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

Question

Quizplus · Accepted Answer

Period costs are operating costs that are expensed in the accounting period in which they are incurred. These costs are not related to the production of products and are not included in the cost of goods sold calculation. Examples of period costs include salaries, rent, utilities, and advertising expenses.

Period Costs Are the ________