Asked by Marisol Trejo on Jul 03, 2024

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Costs expensed with the passage of time are called period costs.

Period Costs

Expenses recognized in the income statement in the period they are incurred, not directly tied to the production process and therefore not inventoriable.

  • Identify the differences between period costs, costs that can be directly traced, and expenses incurred as time progresses.
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MD
Monae DenishJul 06, 2024
Final Answer :
True
Explanation :
Period costs are expenses that are not related to the production of goods or services and are expensed over the period in which they are incurred, as opposed to being included in the cost of the goods or services produced. Examples of period costs include rent, salaries and wages of administrative staff, and advertising expenses.