Period costs are not involved in the production process and are instead associated with the general operating activities of a business, such as selling, marketing, and administrative expenses. They are not classified as direct labor, direct material, or factory overhead, and are not found on the balance sheet or job order cost sheets.

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Period Costs Are

Question 122

Multiple Choice

Period costs are

A) found on the balance sheet
B) not involved in the production process
C) classified as direct labor, direct material, or factory overhead
D) found on the job order cost sheets

Correct Answer: