1. Which of the following is considered a product cost?
A. Utility expense for the current month.
B. Transportation cost on goods received from suppliers.
C. Salaries paid to employees of a retailer.
D. Transportation cost on goods shipped to customers.
2. Which of the following statements is true about period costs?
A. Operating expenses are not period costs.
B. Period costs are expensed when the products associated with these costs are sold.
C. Period costs are usually recorded as assets.
D. Most period costs are expensed in the period the costs are incurred.