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Inventoriable Costs and Period Costs Assignment Help for a Top-Notch Assignments!

The costs of direct material, manufacturing overhead and labor are referred to as inventoriable costs. Period cost refers to any cost which can’t be changed into inventory, fixed assets or prepaid expenses.This cost is not a part of the process of manufacturing. Our inventoriable costs and period costs homework help experts discuss this topic in depth so that it is easy for students to understand clearly.

With our manuals at myhomeworkhelp.com, you too can get a perfect idea of concepts associated with this and how to deal with them easily.

What is an inventoriable cost?

Inventoriable cost is that cost which is applied to the finished goods which a company produces in order to sell. Certain examples of this cost are the amount spent on raw materials, part of overhead and direct labour. In balance sheet, these costs are documented on inventory accounts before the sale of the products. Inventoriable costs and period costs assignment help make this topic easy for students to work on.

Since it is recorded on the balance sheet, there is a possibility that its charges many not occur during the period when it happened but postponed to a later period. This includes items like:

  • Direct materials
  • Freight in
  • Direct labor
  • Manufacturing overhead. Variable and Fixed both is included.

The manufacturing overhead list includes costs like depreciation of equipment, building rent, staff compensation, salaries of production management, utilities used in the factory, etc. For more details about this, you can contact our inventoriable costs and period costs homework help team.

What is Period Cost?

A period cost is closely related to time passage rather than the event of transaction. It is a cost which cannot be changed to fixed asset or inventory or any other prepaid expenses. It is generally charged to an expense at that moment and it is also known as period expense. The charge of this expense is accounted when it happens. In the income statement inclusion of this cost is not done.

It is mainly recorded in the administrative or selling expense section in the company’s income statement. Some examples of this are listed below by our inventoriable costs and period costs assignment help experts for a clear understanding of this.

The expenses are:

  • Advertising
  • Selling
  • Commissions
  • Entertainment and travel
  • Depreciation
  • Administrative and general expenses
  • Rent
  • Salaries and benefits of administrative and executives

This list clearly states that most of administrative costs which incur in business can be regarded as period expenses.

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