Which of the following is true about product and period costs?
A)Product costs are usually manufacturing costs,and period costs are usually nonmanufacturing costs.
B)Product costs are usually nonmanufacturing costs,and period costs are usually manufacturing costs.
C)Both product and period costs are usually manufacturing costs.
D)Both product and period costs are usually nonmanufacturing costs.

Question

Quizplus · Accepted Answer

Product costs are costs associated with manufacturing a product, such as direct materials, direct labor, and overhead. Period costs, on the other hand, are nonmanufacturing costs that are expensed during the period in which they are incurred, such as selling, general, and administrative expenses. Therefore, product costs are usually manufacturing costs, while period costs are usually nonmanufacturing costs.

Which of the Following Is True About Product and Period