Period costs
Period costs is all costs in the income statement other than cost of goods sold.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Period costs. All costs in the income statement other than cost of goods sold.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Period costs. The costs incurred by the company to operate the business that do not get treated as inventory, but rather are expensed immediately in the period in which they are incurred. These costs do not relate to manufacturing or purchasing product. Period costs are often called operating expenses or selling, general, and administrative expenses.
