Period Costs and Product Costs

question 123

Multiple Choice

Period costs and product costs:

• A) refer to inventory costs
• B) are costs of service firms
• C) appear on the income statement
• D) All of these answers are correct.

---

Definitions:

Earnings Distributed

The portion of a company's profit paid out to shareholders, typically in the form of dividends.

Intraperiod Tax Allocation

This accounting technique involves allocating income tax expense or benefit among different components of comprehensive income within a single reporting period.

Continuing Operations

The segments or activities of a business that are expected to continue for the foreseeable future and are not classified as discontinued.

Disposal

The act of getting rid of an asset through sale, scrapping, or other methods, often resulting in a gain or loss in financial accounting.