Period costs are expensed as incurred, rather than charged to jobs.

Question

Quizplus · Accepted Answer

Period costs are costs that are not directly related to the production of goods and services, such as marketing expenses, administrative salaries, and rent. These costs are expensed as they are incurred, rather than being allocated to specific jobs or products. This is because they do not contribute to the creation of a specific product or service, but rather support the overall operation of the business.

Period Costs Are Expensed as Incurred, Rather Than Charged to Jobs