Period Costs Do NOT Include

question 3

Multiple Choice

Period costs do NOT include

• A) order-getting costs.
• B) order-making costs.
• C) order-filling costs.
• D) All of these are period costs.

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Definitions:

Accounting Equation

Assets = Liabilities + Owner’s Equity.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, usually a fiscal quarter or year, to calculate net income.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Net Income

The net earnings of a company, calculated by deducting all operating costs and taxes from the total income.