Product costs are all the expenses related to producing oracquiring products. Period costs are all other expenses. Periodcosts are tracked during the period in which they occur andproducts costs are moved to the expense account for costs of goodssold so when the good they are associated with is sold to makematching those expenses with the sales revenue easy. For examplethe wages for sales staff who sell a books would be a period costand be recorded as an expense for the period in which they work.Whereas, if you buy books one year, but don't sell them until thenext they wouldn't be recorded in the expense account as cost ofgoods sold until the following year when they are actually sold andare a product cost.
The difference between a product cost and a period cost. Aproduct cost are those costs that are directly associated with theproduction or acquisition of a good or product. For example, if aMike's camera store owner bought cameras and paid the shipping toget them to the store the cost of the camera as well as the cost ofthe shipping would be considered product costs. A period cost is alittle more abstract. A period cost would be all of the otherexpenses. For example the cost of marketing, advertising andadministrative would be considered a period cost.
Respond to the above paragraphs in 2 separate paragraphs in yourview or opinion.
