1. Which of the following statements about period costs is true?

A. Period cost are included in inventories on the balance sheet.

B. Period cost are included in in cost of goods sold on the income statement

C. period cost are substracted as expenses on the income statement during the current period

D. perio costs are included in the statement of cost of goods manufactured.

2. Which of the following statements about period costs is true?

A. Period cost are not included in inventories on the balance sheet

B. period cost are inluded in cost of goods sold on the income statement.

C. period costs are not substracted as expenses on the income statement during current period.

D. period cossts are included in the statement of cost of goods manufactured.

3.Steel used to make the front and sides of an office desk is Direct material cost Indirect matieral cost Manufacturing overhead cost Period cost

4. actvity based costing was developed to

A. reduce direct material costs

B increse sales of the product

C compute more accurate product cost

D reduce administrative salaries