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What is difference between product cost period cost and expenses?
Wiki User
∙ 14y ago
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.
Wiki User
∙ 14y ago
Wiki User
∙ 14y agoWhat is the difference between product and period costs
Wiki User
∙ 9y agoProduct cost is that cost which is allocated to product and without which product cannot be manufactured while period cost must be incurred even there is no production in fiscal year.
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Difference between outstanding expenses and prepaid expenses?
Outstanding expenses are the expenses which have fallen due at the end of the accounting period but which has not been paid. Its a liability for the company and will be shown under the Current liabilities and provisions. Prepaid expenses are the expenses which paid during the year before its due. The money is paid out but its not due at the end of the period. Its an asset and will be shown under current Assets in the Balance sheet.
Are selling and administrative expenses treated as product costs or period costs under variable costing?
Period Costs.
Are selling and administrative expenses treated as product costs or as period costs under variable costing?
Period Costs.
What is difference between gross domestic product and per capita in Norway?
Gross domestic product can be define as a system of checking difference country product in any given period of a year. while per capital a methods to check induvidual product per year.
Is advertising charges are included in the selling price?
No advertisement expenses are not included in selling price because selling expenses are not part of product cost rather these are period cost.
What is the difference between cost of sales and expenses?
In accounting, cost of sales is what you payed for the goods you sold during that fiscal period. Expenses are any costs that were incurred from the business performing it's purpose. Like rent, utilities, upkeep, salaries, etc. would all be expenses where the cost of goods sold you would get from subtracting the goods you sold from your stock at the beginning of the fiscal period.
What is the difference between prepaid expense and advances?
Expenses already incurred but not necessarily for the current accounting period is prepaid expense. In the case of advance, the expenses even though identified, have not been incurred but only cash has been taken out for the purpose of incurring such expense.
What is the difference between warranty and guaranty?
Warranty- Promising to repair or replace it if necessary within a specified period of time Guarantee- A promise that a product will be repaired if not of a specified quality. Its not a big difference.
A nazard true or false-accrual convention is when the revenue earned for a particular period is added to the expenses involved in making the revenue in that period-accounting?
It is false. The right answer is ,the revenue is matched with expenses involved in making the revenues in that period.\the difference will produce a profit or loss.
If product costs eventually become expenses when a produce is sold why are accountants so careful when making product cost and period expense classifications?
Gives a comparative cost of product related to time. Gives current expenditures and comparative basis to previous period costs.
What is the difference between the rose period and the blue period?
The difference between the rose period and the blue period is that the rose period started when Pablo found the love of his life, but the blue period started when his best friend died.
Is there a difference between name brand items and generic brands?
The only difference is that the name brand product has been tested and development by a company specializing in that product. After a period of time, the brand name product (with the same ingredients) can be release for other companies making generic products to then make and sell the same product under a different name. In short, no there is essentially no difference.
