What is the difference between a product cost and a period cost? Give three examples of each. What is the difference between a direct cost and indirect cost? Give two examples of each
A product cost is one that is associated with making or acquiring inventory. A period cost is any cost other than those associated with making or acquiring products and is not considered inventoriable. Students will have a variety of examples, but direct material, direct labor, and overhead are product costs. Selling and administrative expenses are considered period costs. A direct cost is one that is physically and conveniently traceable to a cost object. Direct material and direct labor are direct costs. An indirect cost is one that cannot be conveniently traced to a cost object. Any type of overhead cost is considered indirect.
You might also like to view...
Marantz Co neglected to amortize the premium on outstanding ten-year bonds payable. What is the effect of the failure to record premium amortization on interest expense and bond carrying value, respectively?
a. Understate; understate b. Understate; overstate c. Overstate; overstate d. Overstate; understate
Fatalities or hospitalizations of more than three employees are known as:
A. accidents B. catastrophe C. culpability D. imminent danger E. upheaval
________ is the total stream of purchases that a customer could contribute to the company over the life of the relationship.
A. A premium price B. Customer equity C. Profit D. Net worth E. Customer lifetime value
It takes one day for Peter Gibbons to complete a TPS report and attach the cover sheet. During that day, Peter spends about 15 minutes a day performing actual work and the other 7 hours and 45 minutes spacing out
Which of the following statements is correct? A) Peter's cycle time is 7 hours and 30 minutes. B) Peter's efficiency is 25%. C) Peter's productivity is 8 hours per TPS report. D) Peter's percent value-added time is just over 3%.