Which of the Following Is True About Product and Period

question 5

Multiple Choice

Which of the following is true about product and period costs?

• A)Product costs are usually manufacturing costs,and period costs are usually nonmanufacturing costs.
• B)Product costs are usually nonmanufacturing costs,and period costs are usually manufacturing costs.
• C)Both product and period costs are usually manufacturing costs.
• D)Both product and period costs are usually nonmanufacturing costs.

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Definitions:

Recognise

The accounting process of officially recording an item or transaction in the financial statements.

Monthly Payment

The amount of money that is paid on a monthly basis for the use of a service or repayment of a loan.

IFRS Advisory Council

A group that provides the International Accounting Standards Board (IASB) with strategic advice on the setting and implementation of international financial reporting standards.

IFRS Foundation Trustees

The oversight body responsible for governance and oversight of the International Financial Reporting Standards Foundation.