Period costs would include costs like advertising or insurance where the linkage between these costs and individual sales is difficult to establish.

Question

Quizplus · Accepted Answer

Period costs are not directly linked to the production of goods or services, but rather relate to general business activities such as administration, marketing, and distribution. Examples of period costs include rent, salaries, insurance, advertising, and accounting fees. These costs are expensed in the period in which they are incurred and are not included in the cost of goods sold.

Period Costs Would Include Costs Like Advertising or Insurance Where