Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 17

Distinguish between product costs and period costs.

Step 1 of 2

Cost:

Cost refers to the expenditure incurred to manufacture product or provide a service. Since a number of cost are incurred during production process these costs are required to be bifurcated based on their usage, frequency etc.

Cost can be divided into product cost and period cost.