Questions: Period costs are a. found on the balance sheet b. found on the job order cost sheets c. classified as direct labor, direct materials, or factory overhead d. not involved in the production process

The answer is d: not involved in the production process.

Explanation for each option:

a. Found on the balance sheet: Incorrect. Period costs are not recorded on the balance sheet; they are typically expensed on the income statement in the period they are incurred.

b. Found on the job order cost sheets: Incorrect. Job order cost sheets track costs directly associated with production, such as direct materials, direct labor, and factory overhead, not period costs.

c. Classified as direct labor, direct materials, or factory overhead: Incorrect. These are product costs, not period costs. Period costs are not directly tied to the production process.

d. Not involved in the production process: Correct. Period costs are expenses that are not directly tied to the production process, such as selling, general, and administrative expenses.

Summary: Period costs are expenses that are not directly related to the manufacturing process and are expensed in the period they are incurred.