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What are costs that are treated as assets until the product is sold?
product costs
What costs are treated as product costs under direct costing?
All those costs which directly related to manufacturing of goods or providing of services are called product costs like labor, material etc and no other cost can be described as product cost.
Like product costs are not necessarily treated as expenses in the period in which they are incurred?
Like product costs, which include direct materials, labor, and overhead, are initially capitalized as inventory on the balance sheet rather than being treated as expenses immediately. These costs are only recognized as expenses when the inventory is sold, at which point they are recorded as cost of goods sold (COGS) on the income statement. This matching principle aligns expenses with revenues, providing a clearer picture of profitability for a given period. Thus, the treatment of these costs reflects the timing of their impact on financial statements.
Are freight costs period or product costs?
Period
Direct cost of sales?
Direct cost of sales are those costs that exists as a result of selling the product. Indirect costs are costs that are there whether the product sells or not.
What are costs that are treated as assets until the product is sold?
product costs
What costs are treated as product costs under direct costing?
All those costs which directly related to manufacturing of goods or providing of services are called product costs like labor, material etc and no other cost can be described as product cost.
What Expenses recorded as fixed assets?
Those costs which used in business for more than one fiscal year treated as fixed assets.
Are selling and administrative expenses treated as product costs or as period costs under variable costing?
Period Costs.
Are selling and administrative expenses treated as product costs or period costs under variable costing?
Period Costs.
Things you must give up to buy the product or service are called product?
opportunity costs
Decreases in retained earnings that represent costs of assets or services used to earn revenues are called what?
expenses
What are Things you must give up to buy product or service called?
opportunity costs
Describe the differences between implicit costs and explicit costs?
Explicit costs are those that are a result of a product. Implicit costs are costs that are associated with a product, but they can't be directly linked to the product.
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.
Like product costs are not necessarily treated as expenses in the period in which they are incurred?
Like product costs, which include direct materials, labor, and overhead, are initially capitalized as inventory on the balance sheet rather than being treated as expenses immediately. These costs are only recognized as expenses when the inventory is sold, at which point they are recorded as cost of goods sold (COGS) on the income statement. This matching principle aligns expenses with revenues, providing a clearer picture of profitability for a given period. Thus, the treatment of these costs reflects the timing of their impact on financial statements.
Are freight costs period or product costs?
Period
