Question

Product and Period Costs Identify the following costs as a product cost or a period cost for a magazine publisher: a. Sales salaries b. Paper used for the magazine c. Maintenance on printing machines d. Depreciation expense—corporate headquarters

Answer 1

Step-by-step explanation:

We were told to Identify the following costs as a product cost or a period cost for a magazine publisher:

PRODUCT COST are all the incurred cost during production of a service/ product till it's available to get to the consumer. This could be direct labor as well as over head.

PERIOD COST: are cost that cannot be associated to production cost such as rents, utilities cost that are required for the business.

a). SALES SALARIES

Identification: product cost

b. PAPER USED FOR THE MAGAZINE

Identification: product cost

c. MAINTENANCE ON PRINTING MACHINE

Identification: product cost

d) DEPRECIATION EXPENSES—corporate headquarters

Identification: Period cost