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Reclassifying period costs to product costs is generally considered unethical as it distorts financial reporting and can mislead stakeholders about a company's profitability and cost structure. Period costs, which are expenses not directly tied to the production of goods, should remain separate to ensure accurate financial statements. Misclassification can violate accounting principles and regulations, potentially leading to legal consequences. Transparency and adherence to ethical accounting standards are essential for maintaining trust and integrity in financial reporting.
What else can I help you with?
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.
Is depreciation on office equipment classified as a period cost or product cost?
period cost
Is salaries of factory security guards a period cost or product cost?
Period cost
Production supervisor's salary period cost?
no...product cost
Is property tax on the production plant a product cost or period cost?
Period
