Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Overtime consider 1- Period cost for managerial section 2- product cost for operating section 3- 1 and 2 are correct 4- 2 only is correct ?

user-image
Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2016/06/12
Shameer Nazir Madari
by Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)

Overtime Consider is 

2 - Product cost for operating section

 

The key difference between product costs and period costs is that products costs are only incurred if products are acquired or produced, and period costs are associated with the passage of time. Thus, a business that has no production or inventory purchasing activities will incur no product costs, but will still incur period costs.

More Questions Like This