Period cost, which consists income statement of manufacturing companies belongs to
A. inventory costs
B. product costs
C. non-manufacturing costs
D. manufacturing costs
Answer: Option C
Solution(By Examveda Team)
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.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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