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 are costs that cannot be directly traced to a product and are expensed in the period they are incurred. Examples of period costs include advertising expenses, salaries of administrative staff, and office supplies. Product costs, on the other hand, are directly related to the production of a product, such as direct labor, direct materials, and manufacturing overhead. Other costs and fixed costs are more general terms that do not specifically refer to costs that are expensed in the income statement in the period in which they are incurred.

Costs Which Are Not Directly Required to Produce a Product