[amp_mcq option1=”cost of resale goods” option2=”cost of manufacturing goods” option3=”timed resale of goods” option4=”cost of purchased goods” correct=”option1″]<\/p>\n
The correct answer is: A. cost of resale goods.<\/p>\n
Period costs are costs that are incurred during a period but are not directly related to the production of goods or services. They are expensed in the period in which they are incurred. Examples of period costs include selling, general, and administrative expenses.<\/p>\n
Cost of resale goods is a type of inventory cost. Inventory costs are the costs of the goods that a company has on hand for sale. They include the cost of the goods themselves, as well as any costs associated with acquiring and storing them. Inventory costs are typically classified as either product costs or period costs. Product costs are costs that are directly related to the production of goods. They include the cost of materials, labor, and overhead. Period costs are costs that are not directly related to the production of goods. They include selling, general, and administrative expenses.<\/p>\n
In the income statement of a merchandising company, period costs are reported as expenses in the period in which they are incurred. They are not included in the cost of goods sold.<\/p>\n","protected":false},"excerpt":{"rendered":"
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