Question

anufacturers consider selling and administrative costs to be A. prime costs. B. conversion costs. C. inventoriable costs. D. period costs.

Answer 1

Answer:

D. period costs.

Explanation:

The period cost is the cost which is incurred during the passage of time. It includes the major part of the ling and administrative expenses of the income statement. This cost is not capitalized. It is to be allocated based on the expenses that are against the revenue.  

Example - Depreciation on delivery trucks, advertising expense, etc