Period cost is the cost which must be incurred by business and not influenced with the fact whether there is any production or not in fiscal year.
No, A period cost is not the part of inventory cost. Period cost must be charged in the period in whcih it is incurred.
period cost
It is period cost
period cost
Period cost
No, A period cost is not the part of inventory cost. Period cost must be charged in the period in whcih it is incurred.
period cost
It is period cost
period cost
Period cost
A total period cost is anything that is not prepaid. To calculate period cost, just include anything that is charged in the period incurred.
Yes selling cost not directly relate to production of units that's why it is period cost.
The commission for salespersons is under the period cost. The period cost covers the administrative and selling costs like salaries, commissions, shipping cost, and the cost for research and development.
Period
Depreciation of administrative equipment is period cost because if production is done or not those assets will be depreciated hence cost will be charged as period cost.
Maintainence cost is a period cost as maintainence need to be done even if there is no production at all.
Advertising cost is normally a period cost as it is not product cost because it is not required to produce any units of goods.