Product costs are the costs related to inventory and period costs are the costs related to the selling and administrative functions.

Question

Quizplus · Accepted Answer

This statement is true. Product costs are the costs associated with producing or purchasing inventory, such as direct materials, direct labor, and manufacturing overhead. Period costs are the costs associated with selling and administrative functions, such as marketing expenses, salaries, and rent for office space.

Product Costs Are the Costs Related to Inventory and Period