Question

A period cost ________. a. is always expensed in the period in which it is incurred and NEVER becomes part of an inventory accountb. is the cost incurred by manufacturers to produce their products or incurred by merchandisers to purchase their products c. is a cost that can be traced to the cost object d. includes the cost of all resources used throughout the value chain Unselected I DON'T KNOW YET

Answer 1

a. is always expensed in the period in which it is incurred and NEVER becomes part of an inventory account

Step-by-step explanation:

Period cost is the cost that is incurred at the time passes. It also includes the major parts of the selling and administrative section of the income statement whether variable or fixed and it is neither capitalized also.

The examples of period cost is advertising expenses, delivery trucks depreciation, etc

So, it is never becomes part of an inventory account