Period Costs Homework Help

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Period costs are the costs that are borne in small business. It is also termed as period expenses. They are not directly associated to the products that are traditional called manufactured products. Since there exists an indirect relationship between period cost and inventory, we cannot factor period cost into the cost of production. Direct costs of production are kept track of by dividing them into product costs, and the period cost is recorded as expense. The proper definition is earned marked in period costs homework help.

The various aspects of period cost
The sum total or gross period cost would include a varied range of expenditures. But this will not include the overhead costs that come in from time to time during the manufacturing phase. Let’s divulge our attention to certain aspects the period cost such as

  • Administrative costs that includes staff salaries, supplies that are meant for office and the facilities of the office as well. The facilities that are available in the office are subjected to depreciation rate too.
  • The general expenses like rents and income tax, the ones that are inevitable.
  • Marketing cost which would also include the salaries of the sale staffs, their commissions, the adverting fess and also other sales expenses.

All these would club up to form the total period cost. In period costs homework help there are many sample solutions too.

Its importance

The estimate of the total income of a firm is dependent on the estimate of the net income of a firm. These estimations are made during an accounting period for sure. During the audit, upon keeping records of total period cost, one can be assure that a small business is done at least. Thus, we highlight upon the fact that come what may, the proper recoding of total cost and other expenses as well as the itemised description of every particular cost is very vital. The significance of the same is better viewed when one uses period costs homework help by

Contrasting with product cost
Product has a direct dependence on the period cost, while just as discussed earlier period cost has an indirect relationship with the manufacturing process. All the business related costs can be classified in one of these two groups. Period cost has been highlighted earlier. Coming to product costs we have the wages given labour, the direct wages, and also the cost of the materials which have a direct contribution in the manufacture of the product. Apart from these any added overheads are also taken into account.

The cost of the products is kept a track in the inventor account. These are also weighed against the revenuer if sales. It is so done to give an estimate of the gain present from the trade proceeded so far. For broader view use period costs assignment help via online.

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