Period costs include which of the following?
Correct answer: A. Selling expense
- A. Selling expense
- B. Raw material
- C. Direct labor
- D. Manufacturing overhead
Explanation
Selling expenses are period costs because they are charged against revenue in the period incurred. Raw materials, direct labour, and manufacturing overhead are product costs that become part of inventory until the goods are sold.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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