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When are product costs expensed on the income statement?
When the product is sold and has left the finished goods.
Product costs appear on the income statement in the form of?
Product cost appear on the income statement as cost of goods sold and on the balance sheet as inventory.
Why would reclassifying period costs as product costs increase this period's reported earnings?
You will increase the period's earnings because as a product costs, they may not be reported in the same period. Changing period costs to product costs improves how a company looks on paper, but does nothing for their actual financial position.
What is the business definition for profit loss statement?
The business definition of the profit loss statement is a financial statement that explains your costs, expenses and revenues in a specific time period.
Why traditional cost systems distort product costs because?
they emphasise financial accounting requirements
How do the rising costs of medical insurance affect society?
to hick the product value
What is non financial costs?
Non-Financial Cost Are The Cost That Doesn't Directly In companies cash Flow Or Income Statement Such As Cost Of Non-Efficient Employees
Discuss the factors influencing product mix?
There are a few factors that influence product mix . The main few are changes in the demand in the market , what is costs to produce the product , and financial generation.
How does a contribution margin income statement different from the income statement used in financial reporting?
Contribution margin income statement differs in this way that it only deduct the variable cost from sales to point out that how much is any unit of product is contributing towards recovery of fixed cost while normal income statement don't show this information.
Difference between trading account and manufacturin account?
Manufacturing account, on the other hand, is a financial statement which shows production costs
Factors might affect cost of product?
Labor, resources, distribution costs, overhead, and taxes.
What is the type of cost classification?
(a) By time when computed historic costs standard costs (b) By financial costing Revenue costs capital costs (c) By responsibility controllable costs uncontrollable costs (d) By identification with stock product costs period costs (e) By tracing costs to end products direct costs indirect costs
