Period Costs

This video explains the concept of period costs in managerial and cost accounting. Period costs include things like SG&A expense, and these costs differ from product costs in that they are expensed as incurred (wherewas product costs attach to the product as inventory and flow out of the firm when the product is sold as Cost of Goods Sold).
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[@JenniferACole]

I'm so glad I found these videos... my accounting class is entirely online with no lectures, and I am not doing well teaching myself!! Thanks for making them!!

[@d3ltabrav0]

If Ed ever takes these fantastic videos down, my accounting professors are fucked, they might have to actually teach the material themselves instead of listing RUclips links!

[@monkeymoonky7900]

I had two managerial accounting teachers, well actually three since the first one had to be replaced in the beginning of semester because he was so bad. They were all very awful

[@NeemShow]

you are angel .. thanks alot

[@강예지-n1u]

you are an angel… thank you so much for these videos…

[@jameseldridge3445]

You are saving my grade in accounting haha.. I can't express enough thanks

[@Edspira]

You got this!

[@mokarimi414]

I love these videos!!! very clear!!! saved my life!!!

[@Edspira]

Thank you!

[@mysteriodeception4035]

I pay a 1000+ in fees per month to have this explained to me but I can find an even better explanation on RUclips for free

[@MyFinancialFocus]

The more production capabilities are maximized the lower period costs become!

[@sarashameri9428]

Thank you thank you thank you thank you thank you thank you thank you thank you thank you thank you

[@midapita]

Thank you so much...textbook isn't so well at explaining these topics.

[@danqkdkcjjsofonwnn9676]

Does insurance also including in period cost?

[@Edspira]

If the insurance is for something not related to manufacturing, then it would be a period cost. If the insurance is related to manufacturing (i.e. insurance on the factory), then this would be considered manufacturing overhead and be a part of the product's cost.

[@kevinjinlu7087]

Is period cost are fixed cost?

[@Edspira]

Not all period costs are fixed costs. For example, you will have more selling costs as production increases. Thus selling costs would be a variable cost. However, something like a copy machine lease would be be a fixed amount per month.

[@faizakhtaransari4060]

No, not necessarily. For instance, commission is a variable cost but at the same time it is also Period Cost.

[@lazizr3411]

Are electricity bills considered as a period cost?

[@phillipn.8320]

If it’s electricity for the factory then yes, it’s MOH so a product cost. If it’s electricity for an accounting office building then it’s a period cost.

[@mariannjanegan7214]

hi. Are all periods costs indirect costs? Thanks

[@bartolome.malagon.ramirez]

That seems to be the case, see this link for more details: www.investopedia.com/ask/answers/102714/what-are-differences-between-period-costs-and-product-costs.asp

[@awilliams7607]

yes in a sense it is

[@yoshinegus4019]

I have a factory and pay a monthly Electricity Bill.
Period cost?
or part of OH>>>product cost?

[@Awall2131]

+Yoshi Negus MOH because it is related to the factory

[@ahmedalswaity7914]

If the utilities are related to the factory they are MOH and thus product costs

[@nengangcharles1138]

No, Manufacturing Overhead which falls under Product cost

[@tbsara]

Thank you for this! Just one question, why is marketing a period cost? Isn't it connected to the products?

[@PieEater]

goat