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Costs that are treated as assets until the product is sold are called?
Wiki User
∙ 9y ago
Costs that are treated as assets until the product is sold are called product costs. The costs are added to the inventory, and the expense is recognized when the inventory is purchased.
Wiki User
∙ 9y ago
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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.
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.
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 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.
Decreases in retained earnings that represent costs of assets or services used to earn revenues are called what?
expenses
Things you must give up to buy the product or service are called product?
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 are Things you must give up to buy product or service called?
opportunity costs
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 freight costs period or product costs?
Period
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.
