[Roula0323]

Hi

Which costs are found on the income statement and sometimes found on the balance sheet?

Period costs, product costs, both or neither ?
Thanks,

[manik chand dey]

Actually going by the definition, product costs is related to the units of products purchased or manufactured. For example product costs for a retailer will be the amount paid to the supplier plus any freight. But product costs for a manufacturer will be the direct materials, direct labor, and manufacturing overhead. Product costs will be reported on the income statement as the cost of goods sold expenses. If a unit is unsold, then the product costs will be reported as inventory, a current asset on the balance sheet.

But unlike product cost, period costs (like selling expenses and general administrative salaries, insurance premiums etc) do not attach to the units of product and will not be included in the cost of inventory.