Asked by
Alisha Blocker
on Nov 13, 2024
Verified
Which one of the following represents a period cost?
A) The VP of Sales' salary and benefits
B) Overhead allocated to the manufacturing operations
C) Labor costs associated with quality control
D) Fringe benefits associated with factory workers
Period Cost
Period costs are expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as administrative and selling expenses.
VP of Sales
A top executive responsible for leading the sales department, developing sales strategies, and driving revenue growth for an organization.
Overhead Allocated
The portion of indirect costs assigned to a specific project or production process, often based on predetermined rates or actual expenses.
- Identify the differences between manufacturing expenses (such as direct materials, direct labor, and overhead costs) and non-production expenses (referred to as period costs).
- Gain an understanding of the differences between inventoriable costs and period costs, and their respective recognition in financial statements.
Verified Answer
BO
Learning Objectives
- Identify the differences between manufacturing expenses (such as direct materials, direct labor, and overhead costs) and non-production expenses (referred to as period costs).
- Gain an understanding of the differences between inventoriable costs and period costs, and their respective recognition in financial statements.