Which of the Following Are Period Costs

question 138

Multiple Choice

Which of the following are period costs?

• A) Costs related to the manufacture of products
• B) Current liabilities on the balance sheet
• C) Costs incurred and expensed during the accounting period
• D) Current assets on the balance sheet

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Definitions:

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual units of production.

Actual Overhead

The actual costs incurred for indirect materials, indirect labor, and other expenses that cannot be directly traced to products or services.

Direct Labor Cost

The total cost of all the labor directly involved in the production of goods or services, not including indirect expenses like administration.

Direct Labor Cost

The expense incurred from employing workers who directly work on a company's products or services, which can be directly accounted for.