Period Costs Include

question 85

Multiple Choice

Period costs include

• A) current assets on the balance sheet
• B) current liabilities on the balance sheet
• C) operating costs that are shown on the income statement when products are sold
• D) operating costs that are shown on the income statement in the period in which they are incurred

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Definitions:

EOQ

Economic Order Quantity, a formula that determines the ideal order quantity that minimizes total inventory holding costs and ordering costs.

Fixed Ordering Costs

Fixed ordering costs are the expenses that do not change with the quantity of order and typically include things like delivery charges and order processing fees.

Inventory Value

The total cost or market value of all the goods and materials held by a company.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services provided on credit.