Ch. 19 Job Order Costing Part 3 Quiz

Direct labor cost is an example of a period cost.

False

Period costs are costs that are incurred for the production requirements of a certain period.

False

Period costs are

not involved in the production process.

Which of the following would most likely be a period cost?

Salary of telephone receptionist in the sales office.

Non-manufacturing costs are generally classified into two categories: selling and administrative.

True

The current year's advertising costs are normally considered period costs.

True

Generally, period costs are classified as either

selling expenses or administrative expenses.