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Commerce · Q306

Costing

Graduate and Post Graduate · Commerce · question 306

Q306

Costs which are considered as expenses in accounting period are also known as

A.
inventory costs
B.
period costs
Answer
C.
timed costs
D.
labour overheads

Answer: Option B

Solution

Answer: Option B
Solution:
Costs which are considered as expenses in accounting period are also known as period costs. A period cost is any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets.