The period cost, which consists the income statement of manufacturing companies belong to ____________?

Correct answer: C. non-manufacturing costs

  • A. inventory costs
  • B. product costs
  • C. non-manufacturing costs
  • D. manufacturing costs

Explanation

Period costs are charged to the income statement in the period incurred rather than being attached to inventory. In manufacturing, selling and administrative expenses are the main non-manufacturing period costs.

Written and checked by , editorLast updated
Report an error

The more specific you are, the faster it gets fixed. A source beats an opinion.

Prefer email? support@testustad.com

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.

Practise Cost Accounting

941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Exams that ask Accounting questions like this

Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

More Cost Accounting questions