Which of the following contains period costs?
A)Work in Process Inventory
B)Finished Goods Inventory
C)Cost of Goods Sold
D)Selling and administrative expenses

Question

Quizplus · Accepted Answer

Period costs include all selling and administrative expenses, such as salaries, advertising, rent, and utilities. These costs are not directly related to producing goods or services and are expensed in the period incurred rather than being included in the cost of goods sold. Work in Process Inventory and Finished Goods Inventory are inventory accounts used to track the costs of producing and storing goods, and Cost of Goods Sold is the expense account used to record the cost of goods sold during a period.

Which of the Following Contains Period Costs