Question

On the income statement, which of the following would be classified as a Period cost?

A. Inventory Carry Expense

B. Direct Material Expense

C. Direct Labor Expense

D. R&D Expense


This is for my CAPSIM

Answer 1

The correct answer is D. R&D Expense.

Explanation:

• Statements regarding the income of different companies and their different line items. This is known as R&D Expense.

• R&D is abbreviated as research and development expense.

• This is the money a company sets aside for the production of new products or even services.  

• It is allocated every year for this specific purpose.