Tuesday, August 5, 2014

What are different between product cost and period cost?

What are different between product cost and period cost?
Product costs is the costs are the costs incurred in the making of the product. Manufacturing costs --Direct Materials, Direct Labor, and Manufacturing Overhead. Product cost are also factory costs

Period costs are the selling and administration costs.

Electricity costs for the Accounting dept. is an administration costs
but Electricity costs for the factory is Manufacturing Overhead.

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