1.
Introduction:
Period cost: Cost is calculated based on its occurrence in a period and it is called period cost. These costs are not directly linked with production activities.
Product cost: In a business, the product cost plays a prominent role. It involves all the costs required in the product of a goods or service. So, the cost of direct material, direct labour and factory
To analyse: The reason of an increase in period cost earnings if reclassifying is done as product cost.
2.
Introduction:
Period cost: When a cost is calculated based on its occurrence in a period, it is called period cost. These costs are not directly linked with production activities.
Product cost: In a business, the product cost plays a prominent role. It involves all the costs required in the product of a goods or service. So, the cost of direct material, direct labour and factory overheads that are made use of in the production of a finished goods can be considered as product cost.
To analyse: The actions of Mr. M.K. G to be ethical or unethical.
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Chapter 1 Solutions
MANAGERIAL ACCOUNTING F/MGRS.
- Accounting question is correct answer with solutionarrow_forwardThe industrial enterprise "HUANG S.A." purchased a sorting and packaging machine from a foreign company on 1/4/2017 at a cost of €500,000. The useful life of the machine was estimated by the Management at ten (10) years, while the residual value was estimated at zero. For the transportation of the machine from abroad to the company's factory, the amount of €20,000 was paid on 15/4/2017. As the insurance coverage of the machine during transportation was the responsibility of the selling company, HUANG S.A. proceeded to insure the machine from 16/4/2017 to 15/4/2018, paying the amount of €1,200. The delivery took place on 15/4/2017. As adequate ventilation of the multifunction device is essential for its proper operation, the company fitted an air duct on the multifunction device. The cost of the air duct amounted to €2,000 and was paid on 20/4/2017. On 25/4/2017, an external electrician was paid €5,000 for the electrical connection of the device. The company also paid €5,000 to an…arrow_forwardprovide correct answer of this General accounting questionarrow_forward
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