Asked by ethan battista on Jun 21, 2024
Verified
Period costs are
A) found on the balance sheet
B) not involved in the production process
C) classified as direct labor, direct material, or factory overhead
D) found on the job order cost sheets
Period Costs
Expenses that are not directly tied to the production of goods or services and are expensed within the period they occur.
Production Process
The sequence of operations or activities involved in converting materials into finished goods or services.
Balance Sheet
A financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.
- Identify the role and management of period costs within an organization.
Verified Answer
MJ
Mary Jean BunalJun 25, 2024
Final Answer :
B
Explanation :
Period costs are not involved in the production process and are instead associated with the general operating activities of a business, such as selling, marketing, and administrative expenses. They are not classified as direct labor, direct material, or factory overhead, and are not found on the balance sheet or job order cost sheets.
Learning Objectives
- Identify the role and management of period costs within an organization.