Asked by Jill Colleen Argame on May 08, 2024
Verified
Period costs are classified as either
A) selling expenses or production expenses
B) administrative expense or production expenses
C) selling expenses or administrative expenses
D) general expenses or selling expenses
Selling Expenses
Costs incurred directly from the selling of goods or services, including advertising, sales commissions, and store displays.
Administrative Expenses
Costs related to the general operation of a business, including salaries of executive staff, office supplies, and utility expenses, but not directly tied to production or sales.
- Ascertain the position and regulation of period expenses in an enterprise.
Verified Answer
JS
Jennifer SerranoMay 09, 2024
Final Answer :
C
Explanation :
Period costs are expenses that are not directly related to the production of goods or services, but rather are related to the operation of a business as a whole. These costs are classified as either selling expenses or administrative expenses. Selling expenses are costs related to selling and marketing products or services, while administrative expenses are costs related to running a business, such as accounting, legal, and office expenses. Therefore, the best choice is C, selling expenses or administrative expenses.
Learning Objectives
- Ascertain the position and regulation of period expenses in an enterprise.