Product/ Period Cost: Product cost are those which are necessary to be incurred for the production of the products and it may be both fixed and variable in nature. These cost includes, direct material cost, direct labour cost and manufacturing overheads . These are inventoriable cost and is used for valuation of inventory. Period cost are those cost which are incurred after production of products and is incurred for administrative and selling activities of the business. The Classification of various cost in product or period cost.

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Chapter 18, Problem 2APSA

To determine

Product/ Period Cost:

Product cost are those which are necessary to be incurred for the production of the products and it may be both fixed and variable in nature. These cost includes, direct material cost, direct labour cost and manufacturing overheads. These are inventoriable cost and is used for valuation of inventory.

Period cost are those cost which are incurred after production of products and is incurred for administrative and selling activities of the business.

The Classification of various cost in product or period cost.

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