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Business Accounting and Bookkeeping

What is a period cost?


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Answered 2014-07-17 20:20:37

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.

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No, A period cost is not the part of inventory cost. Period cost must be charged in the period in whcih it is incurred.


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

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Can advertisig cost be a period cost?

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Is maintenance a product cost or period cost?

Maintainence cost is a period cost as maintainence need to be done even if there is no production at all.


Is advertising cost a period cost?

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Is delivery cost a period cost?

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Is the cost of telephone operators for a toll-free hotline to help customers operate products a product cost or a period cost?

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Is salesperson salary a period cost?

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Is direct materials a period cost?

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