Definition of Period cost:
Selling and general administrative expenses identified with the accounting period in which they are incurred, and charged against sales revenue in the same period. Also called period expense.
Depreciation, interest, rent, and other such costs associated with the passage of time (instead of with the units of output) and treated as fixed costs.
How to use Period cost in a sentence?
- You should always know what the period cost was so that you know if you are staying with in your budget.
- Septembers period cost tends to always be the highest of the year, as we buy the raw materials needed for Octobers coffins and cobwebs.
- I asked what the period cost would be and did not get an answer, so I went to someone else who would know.
Meaning of Period cost & Period cost Definition