When are period costs counted as inventory?
A)Before products are sold.
B)After products are sold.
C)After products are completed,but before they are sold.
D)Never.

Question

Quizplus · Accepted Answer

Period costs are not counted as inventory because they are not directly related to the production of goods. Instead, they are expenses incurred during a specific period of time, such as rent, office supplies, and salaries. As such, they are expensed as incurred and are not included in the cost of goods sold or inventory valuation.

When Are Period Costs Counted as Inventory