If selling and administrative expenses are allocated to different products, they should be reported as a
A) product cost
B) factory overhead cost
C) period cost
D) cost of goods sold

Question

Quizplus · Accepted Answer

Selling and administrative expenses are considered period costs because they are not directly related to producing a product, but rather to running the overall business. Therefore, they should be reported separately from product costs, which include direct materials, direct labor, and factory overhead.

If Selling and Administrative Expenses Are Allocated to Different Products