A company’s normal selling price for its product is $27 per unit. However, due to market competition, the selling price has fall
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product cost ( direct materials,direct labour and manufacturing overheads).
It is a combination of products cost materialize cost on assets and period cost materialist on difference income and expenses in time.please find the attachment on the differences.
Explanation:
- Product cost idealizes on inventory, assets to the companies.
- It has segregation direct materials product sales.
- It has segregation direct labour cost maintaing products.
- It has segregation of manufacturing issues with machine for products.
- Period cost is an event which happens at certain point of time.
- It administrative,commission and significant understanding.
- Delivers different set of cost accounting.
- It raises issues and exponential cost incurred.
