Which of the following is a period cost?
A) Labor costs.
B) Freight in.
C) Production costs.
D) Selling costs.

Question

Quizplus · Accepted Answer

Period costs are not related to the production of goods or services, but rather to the overall operation of the business, such as selling and administrative expenses. Selling costs are a type of period cost, while labor costs and production costs are considered product costs since they are directly related to the creation of a product. Freight in may be a product cost if it is incurred to bring raw materials or inventory into the company's possession.

Which of the Following Is a Period Cost