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What are costs that are treated as assets until the product is sold?
product costs
Costs that are treated as assets until the product is sold are called?
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.
Are freight costs period or product costs?
Period
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.
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.
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 costs that are treated as assets until the product is sold?
product 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.
Costs that are treated as assets until the product is sold are called?
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.
Are freight costs period or product costs?
Period
What are three major cost components of a manufactured product?
Materials(the cost of the raw materials used in the product) Labour(the cost in employing workers to manufacture the product) Transportation(the costs associated with both the transportation of the materials and of the finished product)
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.
Fixed costs are costs that?
Fixed costs are costs that donot vary with the quantity of the product produce and have no relation with volume of product like administration staff salary or building rent etc.
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.
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 happens if a product's price decreases?
The product costs less.
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.
