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Yes selling cost not directly relate to production of units that's why it is period cost.
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∙ 9y ago
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Are sales commissions classified as period costs?
They are classified as a selling cost or nonmanufactoring cost. They are classified as a selling cost or nonmanufactoring cost.
Is depreciation on factory equipment a period cost?
It's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.
Is advertising charges are included in the selling price?
No advertisement expenses are not included in selling price because selling expenses are not part of product cost rather these are period cost.
Are salespersons commissions a product cost or period cost?
The commission for salespersons is under the period cost. The period cost covers the administrative and selling costs like salaries, commissions, shipping cost, and the cost for research and development.
Define cost price and selling price?
define cost and selling price
Distinguish between selling cost and production cost?
Under absorption costing you will have direct materials direct labour variable manufacturing overhead and fixed overhead in to product cost. then this figure will be placed on the balance sheet as inventory then to COGS when sold. However selling and administrative cost will be reflected the later part of the income statement and not in the cogs. These cost are know as the period cost because they are not related to the manufacturing process. revenue - cogs = gross profit gross profit - period cost= profit before taxes
Who do you get percentage of loss to ratio?
% loss = ((selling price - cost)/cost x 100 Ratio of loss to cost? (selling price - cost)/cost
What is the average selling cost>?
What is the actual selling price?
How does the cost of production and the selling price affect the profit?
As a very rough approximation,Profit = Selling Price - Cost of Production.As a very rough approximation,Profit = Selling Price - Cost of Production.As a very rough approximation,Profit = Selling Price - Cost of Production.As a very rough approximation,Profit = Selling Price - Cost of Production.
Work out margin when you know the desired selling price and cost?
Margin = Selling Price - Cost
Are period cost a part of inventory cost?
No, A period cost is not the part of inventory cost. Period cost must be charged in the period in whcih it is incurred.
Is direct material a selling cost?
is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost, is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost,
