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- Accounting Conceptsaccounting-mcqs › cost-accounting-mcqs › accounting-concepts
- Published
- 26 Apr 2023
- Last updated
- 28 May 2026
In the income statement of a manufacturing firm, period costs are classified under which category?
Multiple choice question for Accounting Concepts. Select an option, then review the explanation below.
Explanation
Period costs refer to expenses that are not directly linked to the manufacturing process. These are classified as non-manufacturing costs, such as administrative and selling expenses, which are expensed in the period incurred rather than being included in product or inventory costs.
More Accounting Concepts MCQs
Practice related questions from the same subject.
- 1.In project costing, what is the term used for wages paid to workers during periods of inactivity caused by material shortages?
- 2.Given that the direct material cost amounts to $85,000 and the direct manufacturing labor cost is $25,000, what is the total prime cost?
- 3.Given that the direct material cost amounts to $5,500 and the prime cost totals $25,000, what is the value of the direct manufacturing labor?
- 4.Which category includes the expenses for employee health care premiums and pension contributions?
- 5.What term is used to describe the stock of completed products that have not been sold yet?