Period cost

This refers to costs (expenses) paid within a period which do not form part of the cost of goods sold (or held in inventory).

Period costs are typically included within the selling and administrative expenses section of the income statement and include items such as: sales and advertising expenses, staff travel and entertainment, commissions, depreciation, general and administrative expenses.

Period cost is a term normally used in management accounting.

Explore our learning zone to discover more

This entry was posted in . Bookmark the permalink.