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Commerce · Q300

Costing

Graduate and Post Graduate · Commerce · question 300

Q300

Period cost, which consists income statement of manufacturing companies belongs to

A.
inventory costs
B.
product costs
C.
non-manufacturing costs
Answer
D.
manufacturing costs

Answer: Option C

Solution

Answer: Option C
Solution:
Period cost, which consists income statement of manufacturing companies belongs to non-manufacturing costs. Non-manufacturing costs refer to those incurred outside the factory or production department. These are costs are not needed in transforming materials into finished goods.