Asked by Jasmine Hemingway on May 04, 2024
Verified
The current year's advertising costs are normally considered period costs.
Advertising Costs
Expenditures related to the promotion of products or services, which can include various forms of media advertisement, promotional materials, and online ads.
Period Costs
Expenses that are not directly tied to the production process and are expensed in the accounting period in which they are incurred.
- Distinguish between period costs and product costs in cost accounting.
Verified Answer
DM
Dylan MclaughlinMay 11, 2024
Final Answer :
True
Explanation :
Period costs are costs that are not directly tied to the production process, such as administrative or selling expenses, which would include advertising costs.
Learning Objectives
- Distinguish between period costs and product costs in cost accounting.