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Exam IIA-CIA-Part3 topic 2 question 395 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 395
Topic #: 2
[All IIA-CIA-Part3 Questions]

When using the absorption costing approach, which of the following should be categorized as a period cost?

  • A. Selling expenses.
  • B. Fixed manufacturing overhead.
  • C. Direct labor.
  • D. Variable manufacturing overhead.
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Suggested Answer: A 🗳️

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emtofid
1 week, 2 days ago
Selected Answer: A
Period Costs: These are not directly related to production and are expensed in the period they are incurred. They include: Selling expenses (e.g., marketing, sales commissions, distribution costs)
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