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Office utilities are considered a period cost. This is because they are expenses that are incurred in a specific accounting period and are not directly tied to the production of goods or services. Unlike product costs, which are associated with manufacturing or purchasing inventory, period costs are expensed in the period they are incurred.
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Is depreciation on office equipment classified as 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 depreciation on a machine a period cost or product cost?
product cost
Is factory supplies a product or a period cost?
Product cost
Is factory equipment product or period cost?
It is period cost
Is factory utilities a product or a period cost?
Product cost classified further as a manufacturing overhead
Is depreciation on office equipment classified as a period cost or product cost?
period cost
Is supplies for administrative office classified as period cost of product cost?
Supplies for an administrative office would be classified office supplies, which is always treated as a cost of a period. Supplies for a manufacturing company would be classified as a product cost, i.e. wood (supply) in order to make desks (end product).
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?
product cost
Is factory supplies a product cost or period cost?
Product cost
Is factory supplies a product or a period cost?
Product cost
Is factory equipment product or period cost?
It is period cost
Is indirect labor cost 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 state income tax is period cost or product cost?
period cost
Cost of a delivery truck is a period cost or product cost?
Should typically be a product cost.
Differentiate between period cost and product cost?
Period Cost: It is that cost which must be incurred by the company no matter it produce any product or not. Product cost: Product cost is that cost which is necessary to produce any production units to earn revenue.
