Asked by
Erika Valencia
on Nov 13, 2024
Verified
Which of the following are period costs?
A) Raw materials
B) Direct materials and direct labor
C) Direct labor and manufacturing overhead
D) Selling expenses
Period Costs
Expenses that are not directly tied to product production, such as sales and administration expenses, and are charged to the period incurred.
Selling Expenses
Costs associated with the distribution, marketing, and sale of a product or service, excluding direct production costs.
Direct Labor
The cost of wages for labor directly involved in the production of goods or delivery of services.
- Discriminate between costs related to the manufacturing process (direct materials, direct labor, and overhead) and costs that are not associated with manufacturing (known as period costs).
- Comprehend the concept of inventoriable costs and period costs and their treatment in financial statements.
Verified Answer
RS
Learning Objectives
- Discriminate between costs related to the manufacturing process (direct materials, direct labor, and overhead) and costs that are not associated with manufacturing (known as period costs).
- Comprehend the concept of inventoriable costs and period costs and their treatment in financial statements.