Question

Although direct labor and raw materials costs are treated as manufacturing costs and therefore make up part of the finished goods inventory cost, factory overhead is charged to expense as it is incurred because it is a period cost.
A. True
B. False

Answer 1

Answer:

B. False

Explanation:

The period cost is that cost that indirectly related to the process of the production. The sales, general and admin cost should be considerd as the period cost

So as per the given situation, the factory overhead that charged for an expense as incurred so this does not represent the period cost

Therefore the given statement is false