Indicate whether each of the following costs, incurred by a manufacturer
-Manufacturing overhead
A) Product cost
B) Period cost

Question

Quizplus · Accepted Answer

Manufacturing overhead is considered a product cost because it is directly associated with the production of goods and is allocated to the cost of those goods. Period costs are expenses that are not directly tied to production, such as selling and administrative expenses.

Indicate Whether Each of the Following Costs, Incurred by a Manufacturer