Asked by Margaret Everett on May 26, 2024
Verified
Jensen Company's period costs are
A) $345,000
B) $250,000
C) $400,000
D) $175,000
Period Costs
Costs that are expensed in the period in which they are incurred, not directly tied to the production process.
Factory Overhead Incurred
The total costs associated with the operation of a factory that are not directly tied to a specific product, including utilities, maintenance, and management salaries.
- Contrast the financial outlays linked to manufacturing processes with those associated with non-manufacturing functions in an organizational setting.
Verified Answer
HB
Hallie BrownJun 01, 2024
Final Answer :
D
Explanation :
Period costs are the costs that are not directly tied to the production process and are expensed in the period in which they are incurred. Operating expenses fall into this category, making $175,000 the correct answer.
Learning Objectives
- Contrast the financial outlays linked to manufacturing processes with those associated with non-manufacturing functions in an organizational setting.