What are period costs List the two types?

What are period costs List the two types?

You may divide period costs into two categories:

• Selling costs.
• Administrative costs.

Are salaries period costs?

Period costs are those costs recorded as an expense in the period they are incurred. Selling expenses such as sales salaries, sales commissions, and delivery expense, and general and administrative expenses such as office salaries, and depreciation on office equipment, are all considered period costs.

What are examples of product costs?

Examples of product costs are direct materials, direct labor, and allocated factory overhead. Examples of period costs are general and administrative expenses, such as rent, office depreciation, office supplies, and utilities.

Which is not a period cost?

Answer and Explanation: The correct answer is C) Cost of Goods Sold.

Where Are period cost found?

Period costs can be found in the expense section of the income statement. There’s no period cost formula because the included accounts differ from business to business.