The current year's advertising costs are normally considered period costs.

Name: The current year's advertising costs are normally considered period costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Period costs are expenses that are not directly linked to the production of goods, but rather relate to the general operation of a company, such as advertising, marketing, and administrative expenses. Therefore, the current year's advertising costs are considered period costs.

The Current Year's Advertising Costs Are Normally Considered Period Costs