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Period
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∙ 11y ago
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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.
How fixed manufacturing overhead costs shifted from one period to another under absorption costing.?
What arguments are there in favor of treating fixed manufacturing overhead costs as product costs? As period costs?
Are cafeteria costs for the factory a period cost?
No. They are a product cost/factory overhead cost
Is accounting staff salary a period cost or a product cost?
Accounting staff are considered executive costs which would be a period cost.
What are costs that are treated as assets until the product is sold?
product costs
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 difference between product cost period cost and expenses?
Product costs is the costs are the costs incurred in the making of the product. Manufacturing costs --Direct Materials, Direct Labor, and Manufacturing Overhead. Product cost are also factory costs Period costs are the selling and administration costs. Electricity costs for the Accounting dept. is an administration costs but Electricity costs for the factory is Manufacturing Overhead.
Are selling and administrative expenses treated as product costs or period costs under variable costing?
Period Costs.
Are selling and administrative expenses treated as product costs or as period costs under variable costing?
Period Costs.
What is the distinction between product costs and period costs?
product costs are the costs that are assiciated with the whole project you are working on..from start to finnish. period costs are those costs that you need for a certain time fraime within the project itself.
In computing the cost of merchandise sold does freight increase or decrease the cost?
Freight costs are added to the cost of the merchandise. The total is typically referred to as the "landed" cost of the product.
Production supervisor's salary period cost?
no...product cost
Under variable costing variable selling and administrative costs are included in product costs?
No. They are not.they are part of period costs.
How fixed manufacturing overhead costs shifted from one period to another under absorption costing.?
What arguments are there in favor of treating fixed manufacturing overhead costs as product costs? As period costs?
If product costs eventually become expenses when a produce is sold why are accountants so careful when making product cost and period expense classifications?
Gives a comparative cost of product related to time. Gives current expenditures and comparative basis to previous period costs.
Are cafeteria costs for the factory a period cost?
No. They are a product cost/factory overhead cost
Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following a. Product cost b. Manufacturing overhead c. Period cost?
Product cost
