No, A period cost is not the part of inventory cost. Period cost must be charged in the period in whcih it is incurred.
It is 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.
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.
Advertising cost is normally a period cost as it is not product cost because it is not required to produce any units of goods.
Maintainence cost is a period cost as maintainence need to be done even if there is no production at all.
Yes advertising cost is period cost as it is not part of product cost and advertisement donot tide up with production of units.
Yes a salesperson salary would be classified as a period cost.
Accounting staff are considered executive costs which would be a period cost.
It's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.
Direct material is never be a period cost because it is required to manufacture units of products so it is product cost and it can only be a period cost when there is no production of goods but there is a material expenses which is not possible.
What is the difference between product and period costs
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.
Direct labor is a product cost as it is required to manufacture the units of product, Direct Labor may be a period cost in that period where there is no production but management still paying the labor all salaries and wages.