Asked by sonia umezurike on May 04, 2024
Verified
Delivery costs to take the bicycles to stores
A) Product
B) Period
Delivery Costs
Expenses incurred by a company to transport its goods or services to the customer.
Product Cost
The total cost associated with producing a good, including raw materials, labor, and overhead.
Period Cost
Costs that are not directly tied to the production process and are expensed in the accounting period in which they are incurred.
- Identify and sort expenses into either product or period cost classifications.
Verified Answer
MA
MUHAMMAD ABRAR BHATMay 08, 2024
Final Answer :
B
Explanation :
Delivery costs to take bicycles to stores are considered period costs because they are not incurred to manufacture a product but are related to the selling and administrative functions of the business.
Learning Objectives
- Identify and sort expenses into either product or period cost classifications.