Which of the following is not a reason to classify costs as either product or period costs?
A)To determine unit manufacturing costs
B)To determine if the costs are fixed or variable
C)To analyze costs for control purposes
D)To report production costs on the income statement

Question

Quizplus · Accepted Answer

Classifying costs as either product or period costs is not done to determine if the costs are fixed or variable. This information is important for cost behavior analysis, but it is not the reason for classifying costs in this manner. The other options listed are all valid reasons to classify costs as either product or period costs.

Which of the Following Is Not a Reason to Classify