Question

LO 4.1Why are product costs assigned to the product and period costs immediately expensed?

Answer 1

Answer:

Explanation:

The product cost is the cost that is related to the product.

Product cost = Direct materials used + Direct labor + manufacturing overhead

And, the period cost is that cost which is incurred according to the time. It covered mainly selling and administrative expenses  section

The computation of the period cost is shown below:

= Sales salaries expense + Depreciation on delivery trucks + Repairs to office equipment + Advertising expense + Office supplies used