Question

Period costs are the​ ________. A. product costs that must be paid in the accounting period in which they are incurred. B. same as manufacturing overhead costs. C. operating costs that are expensed in the accounting period in which they are incurred. D. costs related to production of products.

Answer 1

Answer:

C. operating costs that are expensed in the accounting period in which they are incurred

Explanation:

Non Manufacturing expenses are Period costs. Period Costs are the operating costs that are expensed in the accounting period in which they are incurred. Examples include selling and administrative expenses.

Remember All Manufacturing expenses are Product Costs and are used in Inventory Valuation, Setting Selling Prices and Profit determination.