Period cost include which of the following ?
Correct answer: D. selling Expenses & administrative expenses
- A. selling Expense
- B. Direct labor
- C. factory overhead
- D. selling Expenses & administrative expenses
Explanation
Period costs are charged to the period in which they are incurred rather than included in inventory cost. Selling and administrative expenses are period costs, while direct labour and factory overhead normally form part of product cost.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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