Period costs are .a.prime cost.b.variable cost.c.fixed costs.d.overhead costs .

Understanding Period Costs

Period costs are expenses that are not tied directly to the production of goods. These costs are incurred over a period of time and are typically recognized as expenses in the period they are incurred, regardless of when the related revenue is earned.

Answering the Multiple-Choice Question

Let's analyze each option provided:

1. Prime Cost: This includes direct materials and direct labor costs related to the production of goods. Period costs do not fit into this category.

2. Variable Cost: These are costs that change with the level of production. Period costs can include some variable costs, but mainly they consist of other expenses not directly tied to production.

3. Fixed Costs: These costs remain constant regardless of the level of production. While period costs can include fixed costs, they are not exclusively fixed.

4. Overhead Costs: This term often refers specifically to indirect costs associated with production. However, overhead costs themselves can be categorized under period costs depending on the context.

Final Analysis

Period costs predominantly encompass selling, general, and administrative expenses, which may include fixed and variable costs but are generally not considered direct costs of production.

Final Answer

Period costs are best categorized as (c) fixed costs.