Costs expensed on the income statement in the accounting period incurred are called ________.
A) direct costs
B) indirect costs
C) period costs
D) inventoriable costs

Question

Quizplus · Accepted Answer

Period costs are costs expensed on the income statement in the accounting period incurred, as opposed to being added to the cost of goods sold as inventoriable costs. Direct costs are costs that are directly related to the production of goods, and indirect costs are costs that cannot be directly linked to the production of goods. Therefore, the best choice is C, period costs.

Costs Expensed on the Income Statement in the Accounting Period