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Which is a period cost rather than a product cost ? (1) Direct materials (2) Variable overhead (3) Fixed overhead (4) Abnormal spoilage

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Question added by Ahmed Tharwat , general accountant , Ocean Kitchen Furniture Fix IND.LLC
Date Posted: 2013/09/24
Ahmed Tharwat
by Ahmed Tharwat , general accountant , Ocean Kitchen Furniture Fix IND.LLC

Material , Labor , and overhead ( both fixed and variable ) are examples of product costs . Abnormal spoilage is not in production process and should be charged to a loss account in the period that detection of the spoilage occurs .

So the answer is Abnormal spoilage

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