FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
15th Edition
ISBN: 9781265564483
Author: Wild
Publisher: MCG
Question
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Chapter 18, Problem 11DQ
To determine

Product Cost:

The overall cost incurred in the manufacturing a product is called product cost. The cost in production of a product usually involves raw material used, direct labor used and manufacturing overhead applied.

Period Cost:

The expense which incurs in usual business operation on periodical basis is called period cost.

To determine:

Explain why product costs are capitalized but period costs are expensed in the current accounting period.

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Chapter 18 Solutions

FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE

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