Period Costs Are Recognized in the Period in Which the Costs

question 62

True/False

Period costs are recognized in the period in which the costs are incurred and placed on the income statement as part of Cost of Goods Sold.

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Definitions:

Cost of Goods Available

The total cost of inventory that a company has to sell in a given period, including both beginning inventory and the cost of any goods manufactured or purchased during the period.

Schedule

A plan for carrying out a process, detailing the times at which certain events are to occur.

Work in Process

Inventory consisting of items that are in the production process but are not yet completed.

Ending Balance

The final amount in an account at the end of a period, calculated by adjusting the starting balance for charges, credits, and other financial activity.