Period Cost Truth Statements:

Which of the following statements are true?

  • The wages of assembly-line workers are period costs.
  • Sales commissions are period costs
  • Period costs are included as part of the cost of goods.
  • Period costs are expensed in the same period in which they are incurred.

Answer:

  • Sales commissions are period costs
  • Period costs are expensed in the same period in which they are incurred. 

Learn more about period and product costs.

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