- 1 Marks
Question
Costs that are charged against revenue irrespective of the volume of production achieved are known as:
A. Semi-variable costs
B. Period costs
C. Direct costs
D. Marginal costs
E. Conversion costs
Answer
B. Period costs
Explanation:
The correct answer is option B, “Period costs.”
Explanation: Period costs are expenses that are not tied to production levels and are expensed in the period incurred. They include costs such as administrative expenses, rents, and salaries.
- Tags: Cost Classification, Cost Management, Period Costs
- Level: Level 1
- Topic: Cost Classifications
- Series: MAR/JULY 2020
- Uploader: Theophilus