Asked by Yadelis Carmona gonzalez on May 04, 2024

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If selling and administrative expenses are allocated to different products, they should be reported as a

A) cost of goods manufactured
B) factory overhead cost
C) period cost
D) cost of goods sold

Administrative Expenses

Costs related to the general administration of a business, such as salaries of senior executives, accounting, and human resources, that are not directly tied to any specific business activity.

Period Cost

Expenses recognized in the accounting period when they are incurred, not directly linked to production activity.

Selling

The process of persuading a customer to buy a product or service, often involving identifying customer needs, presenting solutions, and closing the sale.

  • Differentiate among various cost categories and their significance in the allocation of costs.
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SH
Sabrina HernandezMay 09, 2024
Final Answer :
C
Explanation :
Selling and administrative expenses are considered period costs because they are not directly tied to the production process and are expensed in the period in which they are incurred, rather than being allocated to the cost of producing specific products.