Period Costs Are

question 146

Multiple Choice

Period costs are

• A) found on the balance sheet
• B) not involved in the production process
• C) classified as direct labor, direct material, or factory overhead
• D) found on the job order cost sheets

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Definitions:

Materials Price Variance

The variance between the standard cost and the actual expense of materials, calculated by multiplying the amount bought.

Direct Materials

Raw materials that are directly traceable to the production of a specific product, representing a significant portion of the costs of goods sold.

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the expected costs based on the predetermined overhead rate.

Direct Materials

Raw materials that are directly traceable and allocable to the production of specific goods or services.