For a manufacturing company, which of the following is a period cost?

Second National Bank agreed to pay a high rate of return on long-term certificates of deposit. Shortly after several depositors opted for the long-term CDs, inflation plunged and rates of return dropped. Second National must continue to pay high rates on the long-term CDs even though interest rates have declined significantly. This scenario illustrates:

(a) interest rate risk (b) currency exchange risk (c) business risk (d) commodity price risk

Companies recognize fixed manufacturing overhead costs as period costs (expenses) when incurred when using

a. full costing. b. absorption costing. c. product costing. d. variable costing.