Which of the Following Types of Costs Are Most Likely

question 50

Multiple Choice

Which of the following types of costs are most likely to be classified as period costs?

• A) Administrative costs
• B) Property taxes on factory
• C) Direct materials used in production
• D) Indirect materials

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Definitions:

Discount

A discount refers to a reduction from the usual cost of goods or services, often used as a marketing strategy to increase sales or reward customers.

Sales Revenue

The income earned by a company from its sales of goods or services before any expenses are deducted.

Matching Principle

An accounting principle that requires companies to report expenses at the same time as the revenues they are related to, ensuring that financial statements accurately reflect business performance.

Recorded

Documented in official records or accounts.