I think period costs are related to product manufacturing costs such as supervisor who manages direct labor rather then a Sales representative who is not directly involved. Hope it helps.
+Mandy Finley "period costs" are any costs that are expensed as incurred. This is in contrast to "product costs" which are inventoriable (they become part of inventory and aren't expensed into the inventory flows through Cost of Goods Sold). Thus, if a particular cost (e.g., direct materials, direct labor, manufacturing overhead) is attached to inventory then it is a "product cost"-- everything else is a period cost
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Very effective and I loved all the videos
Are non-manufacturing costs synonymous with period costs?
I think period costs are related to product manufacturing costs such as supervisor who manages direct labor rather then a Sales representative who is not directly involved. Hope it helps.
+Mandy Finley "period costs" are any costs that are expensed as incurred. This is in contrast to "product costs" which are inventoriable (they become part of inventory and aren't expensed into the inventory flows through Cost of Goods Sold). Thus, if a particular cost (e.g., direct materials, direct labor, manufacturing overhead) is attached to inventory then it is a "product cost"-- everything else is a period cost
so manufacturing and non manufacturing costs same as operating and non operating costs
well expld!
So basically labor costs.
Thx q so much. Ur videos are helpful
what is the application you use to explain things and write them on this black board..? :D
SmoothDraw
What's the difference between Manufacturing costs and Product costs? Are they referring to the same thing (DM+DL+MOH)?
they are the same thing
wow so when we pay factory workers it is a product cost
but when we pay the CEO it is a period cost.
That is SO COOL!