Question：Which of the following best describes a period cost?
A. A cost that relates to a time period which is deducted as expenses for the period and is not included in the inventory valuation.
B. A cost that can be easily allocated to a particular period, without the need for arbitrary apportionment between periods.
C. A cost that is incurred regularly every period, eg every month or quarter
D. A cost that is identified with a unit produced during the period, and is included in the value of inventory. The cost is treated as an expense for the period when the inventory is actually sold.
The correct answer is:A cost that relates to a time period which is deducted as expenses for the period and is not included in the inventory valuation.
A period cost is charged against the sales for the period. It is not carried forward in inventory to a future period.