Costs which are not directly required to produce a product but are expensed in the income statement in the period in which they are incurred are called:

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Period costs, also known as operating expenses, are costs not directly related to the production of goods or services. Examples of period costs include salaries, rent, utilities, and advertising. Unlike product costs, these expenses are recognized immediately in the income statement when they are incurred rather than being included in the cost of goods sold.

Costs Which Are Not Directly Required to Produce a Product