Period costs are expensed when they are

Question

Quizplus · Accepted Answer

Period costs are expenses that are not tied to the production of goods or services, but rather are incurred in carrying out general business activities such as selling, marketing, and administration. Examples of period costs include rent, utilities, salaries, and office supplies. These costs are recognized as expenses when they are incurred, regardless of when they are paid or whether they are related to production activities. Therefore, the best choice is A)incurred.

Period Costs Are Expensed When They Are