Answer:
A. these costs are incurred whether or not the company manufactures any goods.
Explanation:
Period costs are those that are incurred by a company that cannot be capitalised into prepaid expense, inventory, or fixed assets. It is closely related to passage of time and does not do with a particular transaction.
Period cost is also called period expense because it is charged to expense at once.
Examples include selling expense, advertising expense, depreciation expense, rent and administrative expense.
These expenses are incurred wether or not production is taking place and is within a particular period. For example rent paid is dependent on yearly period and is not affected wether production happens or not.
