Period costs are charged against the revenue of the current period.

Question

Quizplus · Accepted Answer

Period costs are expenses that are not directly associated with the production of goods or services and are instead charged against the revenue of the current period. Examples of period costs include rent, office supplies, advertising, and salaries for administrative staff. These costs are recognized in the income statement in the period they are incurred and are not included in the cost of goods sold.

Period Costs Are Charged Against the Revenue of the Current