Period Costs are those cost which cannot be allocated to any particular product. They are incurred to aid the administrative and selling department. The common examples of period cost are interest expense, marketing expense and selling expense. Product Costs are related to the manufacturing of a product. They can be allocated to that particular product. Direct material, direct labor and manufacturing overheads are some of the examples of product cost. 1. To Explain: The difference between period cost and product cost:

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Chapter 18, Problem P18.35BPGB

To determine

Period Costs are those cost which cannot be allocated to any particular product. They are incurred to aid the administrative and selling department. The common examples of period cost are interest expense, marketing expense and selling expense.

Product Costs are related to the manufacturing of a product. They can be allocated to that particular product. Direct material, direct labor and manufacturing overheads are some of the examples of product cost.

1.

To Explain: The difference between period cost and product cost:

To determine

2.

To Identify: The cost which is period cost or product cost.

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