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Which of the following statements is true about period costs?
A. Operating expensses are not period costs
B. Period costs are expensed when the products associated with these costs are sold
C. Period costs are usually reacorded as assets
D. Most period cost are expensed in the period the costs are incurred
Expert Answer
Answer : D. Most period cost are expensed in the period the costs are incurred
Period costs are costs other than product costs.they cannot be assigned to cost of goods manufactured.Period costs are expensed in the period in which they are incurred.
