In a manufacturing company,administrative costs are included in period costs.

Name: In a manufacturing company,administrative costs are included in period costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Administrative costs are considered as period costs as they are not directly associated with manufacturing the product but rather with running the overall business operations. Examples of administrative costs include salaries of executives, office rent, office supplies, legal fees, etc.

In a Manufacturing Company,administrative Costs Are Included in Period Costs