The first type of expense is a product cost.These costs can be directly matched to specific transactions or events and are recognized upon recognition of revenue.
2.The second type of expense is a period cost.These are expenses recognized during the period in which cash is spent or liabilities are incurred for goods and services to be used up within a short amount of time.
3.The last type of expense includes those that are allocated systematically and rationally to the period during which the related assets are expected to provide benefits.

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The Answer of The first type of expense is a product cost.These costs can be directly matched to specific transactions or events and are recognized upon recognition of revenue.
2.The second type of expense is a period cost.These are expenses recognized during the period in which cash is spent or liabilities are incurred for goods and services to be used up within a short amount of time.
3.The last type of expense includes those that are allocated systematically and rationally to the period during which the related assets are expected to provide benefits.

The First Type of Expense Is a Product Cost