Which of the Following Statements Is True About Period Costs

question 75

Multiple Choice

Which of the following statements is true about period costs?

• A)Most period costs are expensed in the period the costs are incurred.
• B)Period costs are expensed when the products associated with these costs are sold.
• C)Period costs are usually recorded as assets.
• D)Period costs do not adhere to the matching principle.

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Definitions:

Deontological Theory

An ethical theory that suggests actions are morally right or wrong based on their adherence to rules and duties, regardless of the outcomes.

Utilitarian Notion

A concept in ethics that actions are right if they are useful or for the benefit of a majority, focusing on the outcome of achieving the greatest happiness for the greatest number.

Water Purification

The process of removing undesirable chemicals, biological contaminants, suspended solids, and gases from water to make it safe for human consumption and use.

Corporate Philanthropy

The act of a corporation donating some of its profits or resources to charitable causes as part of its corporate social responsibility.