Period costs
A) Do not become part of the value of inventory for financial or tax reporting
B) Become part of the value of inventory for financial reporting but not tax reporting
C) Become part of the value of inventory for tax reporting but not financial reporting
D) Are the same as indirect manufacturing costs

Question

Quizplus · Accepted Answer

Period costs do not become part of the value of inventory for financial or tax reporting; instead, they are expensed in the period in which they are incurred. These costs are associated with the selling and administrative functions of a business, not with the production of goods.

Period Costs