For manufacturing company, explain the difference between a product and a period cost, including how they...
For manufacturing company, explain the difference between a product and a period cost, including how they are handled in financial statements.
Homework Answers
The product costs are the costs directly incurred to make the product and therefore are part of cost of product being made. Examples: direct material, direct labor.
The period costs are the costs that do not directly incur to make the product but incur with the passage of time. Examples: administrative costs.
In the financial statements, period costs are reported as expenses. Product costs are shown as part of inventory.
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For manufacturing company, explain the difference between a
product and a period cost, including how they...
What are the three major elements of product costs in a manufacturing company? Explain the difference...
What are the three major elements of product costs in a manufacturing company? Explain the difference between a product cost and a period cost. Distinguish between (a) a variable cost, (b) a fixed costs, and (c) a mixed cost AND provide an example of a product/service that contains each of the three different types of costs.
what is the difference COst and Period cest 2 between product what is the difference COst and Period cest 2 bet...
what is the difference COst and Period cest 2 between product
what is the difference COst and Period cest 2 between product
Explain why product costs are capitalized but period costs are expensed in the current accounting period....
Explain why product costs are capitalized but period costs are expensed in the current accounting period. Explain how business activities and inventories for a manufacturing company, a merchandising company, and a service company differ. Distinguish between direct labor and indirect labor. Distinguish between (a) factory overhead and (b) selling and administrative overhead. Distinguish between direct material and indirect material. What product cost is both a prime cost and a conversion cost?
What is the difference between product costs and period cost? Give example?
What is the difference between product costs and period cost? Give example?
1. For a manufacturing company, which of the following is an example of a period cost rather than a product cost?
1. For a manufacturing company, which of the following is an example of a period cost rather than a product cost? A) Depreciation of factory equipment. B) Wages of salespersons C) Wages of machine operators D) Wages of machine operators2. The advertising costs incurred by Pepsi to air its commercials during the hockey season can best be described as A) Fixed cost B) Variable cost C) Prime cost D) Conversion cost 3. How would the wages of factory maintenance personnel usually be classified? A) Direct labour and manufacturing overhead B) Indirect labour and manufacturing overhead C) Direct...
What is the difference between product and period costs?
What is the difference between product and period costs?
4. What is the difference between total manufacturing costs and cost of goods manufactured? Cost of...
4. What is the difference between total manufacturing costs and cost of goods manufactured? Cost of goods manufactured and cost of goods sold? 5. Do you think a public company should be concerned with Corporate Social Responsibility? Why ohwhy not?
Additive Manufacturing: 1. Explain the difference between subtractive manufacturing and additive manufacturing processes, and include one...
Additive Manufacturing: 1. Explain the difference between subtractive manufacturing and additive manufacturing processes, and include one example in each case. 2. Identify one comparative advantage and one limitation of additive manufacturing. 3. Explain how selective laser sintering and 3D printing processes are different? 4. Describe fused deposition modeling briefly. 5. Identify the additive manufacturing process that utilizes an adhesive to join layers of powder to build a prototype. 6. What it is important to develop prototypes.
1. Explain why the calculated forecasted cash balance for a company is crucial to understanding how...
1. Explain why the calculated forecasted cash balance for a company is crucial to understanding how a company will be financed in the future. 2. Describe the difference between the full forecast of financial statements and the parsimonious method. When is one preferable to the other? 3. Explain the difference between organic and acquired growth.
REQUIRED: Calculate the following manufacturing cost variances for the company for the period. Show all supporting...
REQUIRED: Calculate the following manufacturing cost variances for the company for the period. Show all supporting calculations. (1) Direct materials price variance. (2) Direct materials quantity variance. Direct labor price (rate) variance. Direct labor quantity (efficiency) variance. Variable manufacturing spending (price) variance. Variable manufacturing efficiency (quantity) variance. Fixed manufacturing spending (price) variance. Fixed manufacturing volume variance. (7) Problem 1 (25 points). Versailles Company produces a product that relies on a standard cost system for planning and control. The following are...
what is the difference COst and Period cest 2 between product
what is the difference COst and Period cest 2 between product
1. For a manufacturing company, which of the following is an example of a period cost rather than a product cost? A) Depreciation of factory equipment. B) Wages of salespersons C) Wages of machine operators D) Wages of machine operators2. The advertising costs incurred by Pepsi to air its commercials during the hockey season can best be described as A) Fixed cost B) Variable cost C) Prime cost D) Conversion cost 3. How would the wages of factory maintenance personnel usually be classified? A) Direct labour and manufacturing overhead B) Indirect labour and manufacturing overhead C) Direct...
4. What is the difference between total manufacturing costs and cost of goods manufactured? Cost of goods manufactured and cost of goods sold? 5. Do you think a public company should be concerned with Corporate Social Responsibility? Why ohwhy not?
REQUIRED: Calculate the following manufacturing cost variances for the company for the period. Show all supporting calculations. (1) Direct materials price variance. (2) Direct materials quantity variance. Direct labor price (rate) variance. Direct labor quantity (efficiency) variance. Variable manufacturing spending (price) variance. Variable manufacturing efficiency (quantity) variance. Fixed manufacturing spending (price) variance. Fixed manufacturing volume variance. (7) Problem 1 (25 points). Versailles Company produces a product that relies on a standard cost system for planning and control. The following are...
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