ECONOMICS

Detailed explanation-1: -Items that are not period costs are those costs included in prepaid expenses, such as prepaid rent. Also, costs included in inventory, such as direct labor, direct materials, and manufacturing overhead, are not classified as period costs.

Detailed explanation-2: -Answer and Explanation: The correct answer is C) Cost of Goods Sold.

Detailed explanation-3: -Period costs are all costs not included in product costs. Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs.

Detailed explanation-4: -Advertising expenses and Indirect labor is a period cost.

Detailed explanation-5: -Indirect materials can be accounted for in one of two ways: They are included in manufacturing overhead, and are allocated to the cost of goods sold and ending inventory at the end of each reporting period based on some reasonable method of allocation. They are charged to expense as incurred.