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-   -   Which of the following is not a period cost? (https://www.askmehelpdesk.com/showthread.php?t=464038)

  • Apr 11, 2010, 12:22 PM
    mrjasmin
    Which of the following is not a period cost?
    Which of the following is not a period cost?
  • Apr 15, 2010, 12:42 PM
    pready

    A period cost is Rent because the amount does not change with a change in production and it is an amount that is charged whether you produce anything.

    A non period cost will be labor or materials because the amount will change as your production changes. If you produce one product you use 1 set of materials, but if you produce 2 prodcuts you will use 2 sets of materials so the amount changes as your production incrfeases or decreases in an acocunting period.

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