Final answer:
Period costs such as general and administrative expenses decrease operating expenses and net income, and they are recognized on the income statement when incurred.
Step-by-step explanation:
Period costs for a manufacturing company, such as general and administrative expenses, impact the financial statements by decreasing operating expenses and decreasing net income. These costs are not tied to the production process and do not affect inventory or cost of goods sold. Instead, these costs are recognized on the income statement in the period they are incurred. Expenses like rent on a factory, salaries for administrative staff, and office supplies are typical examples of period costs.