Which of the Following Is Considered a Period Cost

question 41

Multiple Choice

Which of the following is considered a period cost?

• A)Transportation cost on goods received from suppliers.
• B)Advertising expense for the current month.
• C)Cost of merchandise purchased.
• D)None of the above is considered a period cost.

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Definitions:

Trade Specialization

The economic practice where countries or regions focus on producing goods and services in which they have a comparative advantage, leading to increased efficiency and productivity.

Trade Surplus

Occurs when a country's exports exceed its imports during a specific time period, indicating a positive balance of trade.

Bilateral Trade Agreement

An agreement between two countries that lowers tariffs and trade barriers on most goods and services traded between them.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to a country's economy by bringing in revenues.