Which of the following is NOT true of period costs?

Question

Quizplus · Accepted Answer

Period costs are expenses that are not associated with the production of goods, but with operating expenses such as rent, salaries, and advertising. These costs are expensed in the period in which they are incurred and cannot be assigned to a product. The most common types of period costs are selling and administrative costs. Since period costs are expensed in the period in which they are incurred, they do not appear on the balance sheet as inventory. Therefore, statement D is false.

Which of the Following Is NOT True of Period Costs