Costs of resources used in nonproduction elements of a business are referred to as:
A) Expected costs
B) Out-of-pocket costs
C) Period costs
D) Product costs
E) Actual costs

Question

Quizplus · Accepted Answer

Period costs are expenses that are not directly tied to the production process and include costs related to sales, administration, and other non-manufacturing functions.

Costs of Resources Used in Nonproduction Elements of a Business