What type of expenses are included in Period Costs?

Period costs encompass expenses that are not directly linked to the manufacturing process. These costs are typically incurred over a period and are accounted for in the income statement in the period during which they are incurred, rather than being capitalized as part of inventory. Examples of period costs include selling, general, and administrative expenses, such as marketing costs, office supplies, and salaries of administrative personnel.

This characteristic distinguishes period costs from product costs, which include direct labor, direct materials, and manufacturing overhead that are directly associated with the production of goods. Period costs can vary significantly based on business operations and external factors but are crucial for determining a company's profitability during a particular time frame.

In contrast, other choices refer to specific categories or components of costs associated with the product costs rather than capturing the broader nature of period costs. Thus, understanding that period costs reflect expenses that do not contribute directly to production illuminates why this option is accurate.