periodic costs
/ˌpɪəˈrɪdɪk ˈkɒsts/ · per.i.od.ic.costs
noun
- Fixed expenses that recur at regular intervals, such as rent or salaries, which are typically recorded as expenses over a specific period, usually a month, quarter, or year. The company's periodic costs, including rent and utilities, were significant contributors to their quarterly expenses.
- Recurring expenses that are not directly tied to the production of a specific product or service, but are instead related to the overall operation of a business. The company's periodic costs, including marketing and research expenses, were factored into their annual budget.
Did you know? The concept of periodic costs is crucial in accounting and finance, as it helps businesses and organizations accurately track and manage their expenses over time, making informed decisions about resource allocation and budgeting.