Period Costs Are the ________

question 131

Multiple Choice

Period costs are the ________.

• A) product costs that must be paid in the accounting period in which they are incurred
• B) costs that are incurred and expensed during the same accounting period
• C) costs related to production of products the company purchases and sells
• D) same as manufacturing overhead costs

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Definitions:

Future Cost

Costs that have not yet been incurred but are expected to be as a result of current decisions or plans.

Information

Data that has been processed, organized, or presented in a manner that makes it meaningful or useful to the person receiving it.

Accounting Data

Information related to financial transactions and status, used for analysis, planning, and decision-making in business.

Qualitative Terms

These are descriptive, non-numerical characteristics or attributes used to assess aspects of operations, strategies, or market conditions.