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Factory repairs are not typically considered a period cost; they are usually classified as a manufacturing overhead cost. Period costs are expenses that are not tied to the production process, such as selling and administrative expenses. Since factory repairs are necessary for maintaining production capabilities, they are treated as part of the cost of goods sold, impacting inventory valuation rather than being expensed in the period incurred.
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Is factory equipment product or period cost?
It is period cost
Are cafeteria costs for the factory a period cost?
No. They are a product cost/factory overhead cost
Is salaries of factory security guards a period cost or product cost?
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 factory heating costs classified as a product cost or period cost?
Factory heating cost is overhead cost and part of product cost as if there is no production there is no factory heating requires.
Is factory equipment product or period cost?
It is period cost
Are cafeteria costs for the factory a period cost?
No. They are a product cost/factory overhead cost
Is salaries of factory security guards a period cost or product cost?
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 factory supplies a product cost or period cost?
Product cost
Is factory supplies a product or a period cost?
Product cost
Is factory heating costs classified as a product cost or period cost?
Factory heating cost is overhead cost and part of product cost as if there is no production there is no factory heating requires.
Is salary of factory manager a period cost?
Salary of factory manager is Manufacturing overhead. and Manufacturing overhead is Product costs. So, It's not period cost.
Is factory utilities a product or a period cost?
Product cost classified further as a manufacturing overhead
Is depreciation of factory buildings classified as a period cost or product cost?
If factory building is used in production of units of product then it will be added to product cost as it is part of product to manufacture.
How quarterly income statements are affected by the behaviour of costs in repairs and maintenance?
Discuss the ways in which quarterly income can be affected by the behavior of the cost recorded in a repairs and maintenance of factory machinery account
Is repairs on office equipment a period cost?
NoAlternate answer:Expenditures that result in a higher capacity or longer economic lifetime of the equipment is considered an asset, and is allocated over the remaining economic lifetime. On the other hand, expenditures for repairs, maintenance, cleaning, etcetera that do not increase the capacity are expensed as incurred. Hence, yes, repairs on office equipment is a period cost.
