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In traditional cost systems, selling and administrative costs are treated as:

a. period costs. b. product costs c. unexpired costs. d. Inventoriable cost e. None of these

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Question added by Mir Mujtaba Ali , Internal Audit Manager , Confidential
Date Posted: 2015/02/20
Waqas Raza Khan
by Waqas Raza Khan , Accountant , Cold Store Group of Saudi Arabia

Period Cost is right answer.......

Sara Naeem
by Sara Naeem , Trainee Finance officer , Wah Brass Mill

Its option A)Period cost......

mohamed Hakim CMA CPA Candidate
by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

Like all 

Period cost 

 

Thanks for invitation

Tamer Mahmoud Bedir Ahmed
by Tamer Mahmoud Bedir Ahmed , Senior Accountant , Cigalah Trading Group

Option A : Period Cost

it must expensed during the period 

tahir ahmad
by tahir ahmad , Accountant , Muller & Phipps

Option A Period cost is correct,agree with you all

حسين محمد ياسين
by حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

Agree with last answers >>>>>>>>>>>>>>>>>>>>>>>>>

Muhammad Latif Khirani
by Muhammad Latif Khirani , Financial Consultant , Bifringence (International Consulting Firm)

 

 

Option A- Period Cost is appropriate answer in option given.

 

Examples of period costs are:

 

  1. Sales expenses
  2. Advertising expenses
  3. Travel and entertainment expenses
  4. Commissions
  5. Depreciation expense
  6. General and administrative expenses
  7. Executive and administrative salaries and benefits
  8. Office rent
  9. Interest expense (that is not capitalized into a fixed asset)

 

The preceding list of period costs should make it clear that most of the administrative costs of a business can be considered period expenses. 

 

Items that are not period costs are:

 

  1. Costs included in prepaid expenses, such as prepaid rent
  2. Costs included in inventory, such as direct labor, direct materials, and manufacturing overhead.
  3. Costs included in fixed assets, such as purchased assets and capitalized interest

 

 

 

 

Deleted user
by Deleted user

As a period cost and until now treating so .

Waqayan Al Waqayan
by Waqayan Al Waqayan , Secretary of Sharia Supervisory Board (SSB) , Ahli United Bank (AUB)

The period costs are usually associated with the selling function of the business or its general administration. 

answer is a. period costs.

Sidvin Shetty
by Sidvin Shetty , Trade Marketing Executive , Al Khayyat Investments

Good question... I think almost everyone here have given right answer... Its A) Period Costs....

Malik Khalid Mahmood
by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

A - Period Cost .00.0.................................

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