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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Are period cost a part of inventory cost?

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

Is state income tax is period cost or product cost?

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Is factory equipment product or period cost?

It is period cost

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

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

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How calculate total 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.

Is selling cost a period cost?

Yes selling cost not directly relate to production of units that's why it is period cost.

Are salespersons commissions a product cost or 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.

Is depreciation of administrative equipment product cost or period cost?

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.

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


Can advertisig cost be a 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.

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?

Yes advertising cost is period cost as it is not part of product cost and advertisement donot tide up with production of units.

Is delivery cost a period cost?


Is indirect labor cost a period cost?


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?

Yes a salesperson salary would be classified as a period cost.

Is accounting staff salary a period cost or a product cost?

Accounting staff are considered executive costs which would be a period cost.

Is depreciation on factory equipment a period cost?

It's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.

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

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Is direct materials a period cost?

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 difference between product cost period cost and expenses?

What is the difference between product and period costs

Is indirect labor 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.

Is insurance for distribution centre a period cost or product cost?

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Is direct labor cost a period 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.

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