Differentiate between period cost and product cost?

Anonymous

∙ 11y ago

Updated: 8/17/2019

Period Cost:

It is that cost which must be incurred by the company no matter it produce any product or not.

Product cost:

Product cost is that cost which is necessary to produce any production units to earn revenue.

Wiki User

∙ 11y ago

What else can I help you with?

What is difference between product cost period cost and expenses?

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.

Is depreciation on a machine a period cost or product cost?

product cost

Is factory supplies a product cost or period cost?

Product cost

Is factory supplies a product or a period cost?

Product cost

Is factory equipment product or period cost?

It is period cost

Is state income tax is period cost or product cost?

period cost

Is indirect labor cost a period cost?

Indirect labor is considered a period cost because it can't be traced by to the product. If a cost can be traced back to a product, then it is considered a product cost.

Cost of a delivery truck is a period cost or product cost?

Should typically be a product cost.

Is depreciation on office equipment classified as a period cost or product cost?

period cost

Is salaries of factory security guards a period cost or product cost?

Period cost

Production supervisor's salary period cost?

no...product cost

Is property tax on the production plant a product cost or period cost?

Period

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