Period costs can be found on both the balance sheet and the income statement.

Period Costs

Expenses that are not directly tied to production activity and are charged to the period in which they are incurred.

Balance Sheet

A financial statement that shows the assets, liabilities, and equity of a company at a specific point in time, illustrating its financial position.

Income Statement

A report that outlines an organization's earnings and costs for a set period, culminating in a net gain or shortfall.

Discern between period costs and the methodology of their apportionment in financial statements.

Verified Answer

Final Answer :

False

Explanation :

Period costs are expensed on the income statement and cannot be found on the balance sheet as they are not assets or liabilities.

Learning Objectives

Discern between period costs and the methodology of their apportionment in financial statements.