Asked by Braeden Pauwels on Mar 10, 2024
Verified
Period (nonmanufacturing) costs are classified into two categories: selling and administrative.
Period Costs
Expenses that are not directly tied to the production of goods or services, such as selling, general, and administrative expenses.
Selling
The process of exchanging a product or service for money; involves promoting and delivering goods to customers.
Administrative
Related to the activities that manage, organize, and run an organization including tasks such as budgeting, staffing, and directing resources.
- Acknowledge the explanations of product costs and period costs, and their influence on financial documentation.
Verified Answer
EF
Edwards FamilyMar 10, 2024
Final Answer :
True
Explanation :
Period costs, which are not related to the manufacturing of products, are classified into two categories: selling costs and administrative costs.
Learning Objectives
- Acknowledge the explanations of product costs and period costs, and their influence on financial documentation.