Determine whether each of the following is classified as:

Product Cost

The total expenses incurred to create a product, including direct labor, materials, and manufacturing overhead.

Period Cost

Expenses that are not directly tied to the production of goods and are charged to the time period in which they are incurred.

Manufacturing Company

A type of company that uses raw materials, parts, and components to assemble finished goods.

Differentiate between the costs associated with products and those tied to specific periods.
Distinguish between period costs and product costs within a manufacturing environment.

Verified Answer

Final Answer :

1. DL 4. MO
2. MO 5. MO
3. DM 6. DM

Learning Objectives

Differentiate between the costs associated with products and those tied to specific periods.
Distinguish between period costs and product costs within a manufacturing environment.