Use the Information Below to Answer the Following Question(s)

question 41

Multiple Choice

Use the information below to answer the following question(s) .
Frazer Inc. had the following activities in the year:

-Which of the following is true of period costs?

• A) They are also called fixed costs.
• B) They are part of the cost of goods sold.
• C) They are expected to benefit future periods.
• D) They are costs incurred to generate revenue in a specific time period except the cost of manufacturing accumulated as cost of goods sold.
• E) For merchandising sector companies they include all costs not related to the cost of goods purchased for resale.

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Definitions:

Supply

The total amount of a good or service available for purchase at any given price level in a market.

Inelastic Demand

A situation where the quantity demanded of a good or service changes very little when its price changes.

Luxury

Goods or services that are considered superior in quality and are often expensive, catering to a more affluent consumer base.

Necessity

A good or service that is considered essential for survival, such as food, shelter, and healthcare.