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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.

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Q: What is the distinction between product costs and period costs?
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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


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.


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 difference between average costs and marginal costs?

This is the economic distinction equivalent to fully absorbed cost of product and variable cost of product. Average cost is total cost divided by number of units. Marginal cost is the cost to produce the next unit (or the last unit


Production supervisor's salary period cost?

no...product cost


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.


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?


Discuss the relationship between product and cost curves?

The product establishes the cost curve or the relationship between costs and outputs. Costs are influenced by the need and function of a certain product.


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.