the difference between a product cost and a period cost is explained below.
Costs are classified as either product costs or period costs for the purposes of valuing inventories and evaluating expenses for the balance sheet and income statement.
Product costs are allocated to inventories and are treated as assets till the products have been sold.
Product costs become the cost of goods sold on the income statement at the point of sale.
Period costs, on the other hand, are directly taken to the income statement as expenses for the period in during which they are incurred, according to standard accrual practices.
Product cost in a merchandising company is how much the company has paid for its merchandise.
In a manufacturing company's external financial reports, product costs include all manufacturing costs.
Selling and administrative costs are regarded as period costs in both types of businesses and are expensed as they are incurred.
Hence, product cost and periodic cost differ in nature.
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Answer: Competitive advantage
Explanation:
- The competitive advantage is one of the type of competition in the business where the organization are offering various types discount offers, promoting their goods and the services in low price with high quality to the customers due to the competitors in the market.
- The products and the services is produced by the company at low price on the basis of the demand and the requirement of the consumers.
According to the given scenario, the advertisement for the ground coffee is one of the example of competitive advantage as it helps in communicating with the customers in the market due to its ow price and high quality.
Therefore, Competitive advantage is the correct answer.
Answer:
a) 46.7, 80 b) 20, 60 c) yes
Explanation:
a) % utilization= utilization/design capacity × 100
= 7/15 × 100
= 46.7%
% efficiency= efficiency/design capacity × 100
= 12/15 × 100
=80%
b) Utilization= 2/10 × 100 = 20%
Efficiency= 6/10 × 100= 60%
c) A system with higher efficiency ratios will always have higher utilization as these systems will have lesses number of failures
Personal finance depends on your behavior because you are the manager of your financial resources, so it is necessary to carry out personal planning of your finances.
Personal financial behavior can be measured by six dimensions, which are:
- Emergency funds
- Indebtedness level
- Savings rates
- Asset diversification
- Retirement Preparation
- Wealth distribution
Personal finances are directly impacted by our behaviors and decisions. Some of these behaviors are subconscious and difficult to identify, but they should be analyzed in case they negatively influence your finances.
Therefore, financial planning is essential to use your financial resources consciously and in accordance with your goals.
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Answer:
the order point is 19
Explanation:
The computation of the order point is shown below:
Order point is
= Demand during lead time + safety stock
= 11 + 8
= 19
hence, the order point is 19
We simply applied the above formula so that the correct value could come
And, the same is to be considered
And ignored the demand during review cycle as it is relevant for the calculation of the order point