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Product cost or period cost?

Exercise and reference answers

Left
Product cost
Items
  1. Item
    Wood and hinges
    Answer
    Product cost
  2. Item
    HR department
    Answer
    Period cost
  3. Item
    Assembly wages
    Answer
    Product cost
  4. Item
    Sales commissions
    Answer
    Period cost
  5. Item
    President's office
    Answer
    Period cost
  6. Item
    Factory insurance
    Answer
    Product cost
  7. Item
    Accounting dept
    Answer
    Period cost
  8. Item
    Factory utilities
    Answer
    Product cost
Right
Period cost
Instructions
Swipe left for a product cost, right for a period cost.

Explanation

_Source: Jonick, Principles of Managerial Accounting, section 1.2 Cost Terminology and Concepts_
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