What are examples of period costs?
Other examples of period costs include marketing expenses, rent (not directly tied to a production facility), office depreciation, and indirect labor. Also, interest expense on a company’s debt would be classified as a period cost.
What is a period cost quizlet?
Period costs are all costs that are not product costs. Period costs are not included as part of the cost of either purchased or manufactured goods; instead, period costs are expensed on the income statement in the period in which they are incurred. All selling and administrative costs are considered to be period costs.
What is also known as period cost?
September 7, 2021. Period costs are standard costs that businesses must add to their income statements. These costs are typically unavoidable business costs, and they may also be called period expenses, time costs, capacity costs and operating expenses