Selling and administrative expenses are normally period costs.

Question

Quizplus · Accepted Answer

Selling and administrative expenses are classified as period costs because they are not directly related to the production of goods. These costs are incurred to support the overall operation of the business and are expensed in the period in which they are incurred. Examples of selling and administrative expenses include salaries and wages, rent, utilities, advertising, and insurance.

Selling and Administrative Expenses Are Normally Period Costs