Manufacturers consider selling and administrative costs to be

Question

Quizplus · Accepted Answer

Selling and administrative costs are typically not directly related to the production of goods and are therefore considered period costs. Period costs are expensed in the period incurred and are not included in the cost of goods sold or inventory valuation. Prime costs refer to direct materials and direct labor costs, conversion costs include direct labor and manufacturing overhead costs, and inventoriable costs include all costs that are necessary to bring a product to its current condition and location for sale or use.

Manufacturers Consider Selling and Administrative Costs to Be