Asked by Squid Neutral on Jun 11, 2024
Verified
Period costs include direct materials and direct labor.
Period Costs
Costs that are expensed in the period in which they are incurred, rather than being capitalized or included in the cost of goods sold, such as selling, general, and administrative expenses.
Direct Materials
Raw materials that can be directly associated with the production of goods, clearly identifiable and allocable to specific products or jobs.
- Identify the meanings of product costs and period costs, along with their effects on financial reports.
Verified Answer
CB
Caitlin BlondinJun 11, 2024
Final Answer :
False
Explanation :
Period costs are considered indirect costs and do not include direct materials and direct labor. Period costs include expenses such as administrative salaries, rent, utilities, and advertising.
Learning Objectives
- Identify the meanings of product costs and period costs, along with their effects on financial reports.