Costs that are expensed when incurred are called

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1. The accounting records of Georgia Company revealed the following costs: direct materials used, $250,000; direct labor, $425,000; manufacturing overhead, $375,000; and selling and administrative expenses, $220,000. Georgia's product costs total:

a. $1,050,000

b. $830,000

c. $895,000

d. $1,270,000

e. some other amount

2. Costs that are expensed when incurred are called:

a. product costs

b. direct costs

c. inventorial costs

d. period costs

e. indirect costs

3. Which of the following is a period cost?

a. Direct material

b. Advertising expense

c. Indirect Labor

d. Miscellaneous supplies used in production activities

e. Both "B" and "C"

4. Which of the following is not a period cost?

a. Legal costs

b. Public relations costs

c. Sales commissions

d. Wages of assembly-line workers

e. The salary of a company's chief financial officer (CFO)

Reference no: EM13775114

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