What Is Characteristic of a Period Cost

question 218

Multiple Choice

What is characteristic of a period cost?

• A)They include selling costs and administrative costs.
• B)They are used to compute product cost.
• C)They can be included in overhead costs.
• D)They are carried in inventory until the goods are sold.

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Definitions:

Cash Disbursements

Money paid out by a company for various purposes, including operating expenses, investment transactions, and other payouts.

Collections

The process of gathering or accumulating something, often refers to the process of obtaining payments from customers.

Accounts Receivable

Signifies the amount customers owe to a business for products or services that have been provided but not yet compensated for.

Budgeted Selling Price

The anticipated price at which a product is expected to be sold, as determined during the budgeting process.